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Employee Turnover (Six Sigma Project)

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  • #37951

    Murray
    Participant

    Hi,
    I just completed my BB classroom training and am now taking on a project to reduce turnover.  I’m willing to share and learn from others in this forum. 
    My current approach:
    CTQ:  Reduce turnover by 10%
    Possible X’s:  Supervisor, Years of Service, Ethnic Origin, Sex, Age, Role, Dept.  Through my reading in this forum I discovered many organizations used exit interview data.  I’d like to learn how if anyone is interested in sharing.  Thanks..
    [email protected]

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    #112890

    Ken Feldman
    Participant

    I hope your HR department is a little more open than a previous employer where I attempted to do a similar project.  They hit the roof when I wanted to analyze data using ethnicity, gender and age.  I don’t think your Xs are sufficiently inclusive.  Are you making a distinction as to reason for turnover; voluntary leaving, involuntary leaving, leaving for another job, leaving due to relocation, etc.?  I don’t see any Xs indicating type of job, education level, level in the organization, size of department and a whole bunch of other information.

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    #112891

    Murray
    Participant

    Well no one has hit the roof yet!  We’ll see though.  Thanks for the ideas on some more possible X’s.  I’m waiting to receive some data from exit interviews – I think that most of what you mentioned will be within this data.  Definitely will include level in the organization.
    If I may ask what was your problem statement and CTQ?
     

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    #112900

    Rhonda
    Member

    Nick,  I completed a project in Dec of last year on employee turnover.  We were very specific that it was “Voluntary” employee turnover that we were trying to reduce – it may help to get clarification on that.  Sounds like you are looking at Voluntary and Involuntary both.  Q: Is Involuntary really important to the customer? 
    My projects actual objective was to “Reduce the voluntary turnover as measured by annual voluntary terminations from 22% of workforce in 2002 to less than 15% by 12/31/2003 and sustain this level.”
    I actually was able to succeed with this project and further reduced it to 8% in 2004! 
    A couple of pointers.  Age, Race, and Sex had no bearing and HR although they provided this information, they did not want us to report on it.  Since it had no value in our findings, it was fine.  We did find that Location, Supervisor, Function (job), Length of Service, Reason for leaving, Education, Grade, Title, and any Exit Interview information was very helpful.  Unfortunately we did not have Exit interviews for everyone but now require an online one they can fill out privately before they leave.   
    Our data told us that the majority of employees left us before their first year and the next level was just a few before 2 years of service.  That was quite telling.  They were also from two specific job functions which led us to look at job titles next.   Root causes:  We determined that the job descriptions were not clear – therefore were filling positions inaccurately,  some supervisors had some employee/manager issues to name a few.  We ended up doing an employee survey.  The outcome resulted in us going temp to hire on our line staffing, we added some additional reason codes to our profiles for future analyis tracking, revised our job descriptions where it was needed, added in the online exit interview, and implemented some employee programs run by the employee committees to improve employee satisfaction such as recognizing years of service – something we had never done before.  (focused on 1, 2 & increments of 5 years of service) and a few other things I can’t think of without pulling out my report book.  I hope this helps you with your project!  Good luck!
    Rhonda 

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    #112903

    Lass
    Participant

    Two things I have noticed in my limited work experience:
    1. Foreign companies inside the US are more likely to be recpetive to examining ethinicity, age and gender as factors linked to job satisfaction.
    2. Involuntary turnover affects the customer.
    Just my $0.02 on the topic.
    Lass

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    #112905

    Lass
    Participant

    I think I need a spell checker.  Sorry, that was “receptive”.
    Lass

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    #112909

    indresh
    Participant

    if i may add my two cents to the discussion
    – generally asking you all, what shall make you leave or let me put in another way, what shall make you not leave your current company.
    i am doing an empirical research on employee attrition in the first two years of any newly set up organisation and have taken the following factors
    you may check the validity and let me know if they fit in your area of operations
    – the score of an individual on need for achievement (thematic apperception tests)
    – the style of manager on GRID
    – the ease of entry into the market by the organisation
    – migratory work force or local
     
    all these factors are being studied for their effect on performance rating of the individual quarterly and tenure with the company
     
    these individuals are those who have left the company within two years of set up( methodology is to contact each individual who has left and administer the standardised tests )
    these factors if you look at are independent of level,. grade etc hence takes care of the analysis at a broader level
    for sure they shall be linked to the recruitment strategy for newly set up company
     
    rgds,
    feel free to put in your comments and feedback to me directly at [email protected]

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    #112925

    Murray
    Participant

    Rhonda – Thanks so much for the insight.  It’s greatly appreciated!  If I may ask, what was the process that was being improved here?  Did you all consider it in the hiring cycle, termination, or neither?

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    #112928

    aishwarya
    Participant

    Few other pointers that can be focussed on :

    Sure enough, employees that terminate their service voluntarily, effect the customer satisfaction level and cause a reasonable concern with regards to the operational efficiency and proficiency, in the minds of the customers..
    Employees come from different walks of life, as we can see on their resume, they would have experience in different types of services..iam going to Services Industry for example.  In my opinion, at the time of hiring an employee, resume can be a very good reflective of the intentions of the applicant.  Not always can the management be blamed for an employee leaving the organisation.  The employee could have left just out of “Habit” of changing jobs and analysis of the same and questioning the same of the employee and measuring the seriouness and the trust-worthyness of the employee can reduce the chances of the same applicant quitting at a later date…This analysis when carefully done could reduce the training costs of hiring a new replacement..
    Peer Factors can also be considered while trying to reduce the employee turnover.  Colleagues and fellow workers can, to a great extent effect the performance and satisfaction levels of an employee..
    The whole working environment can be taken into picture..is it encouraging or criticizing….
    Flexibility of work timings…
    As it was mentioned before, definitely job descriptions and expectations and review based on the same standards and specifications
    Appreciation for an employee when he/she performs exceptionally and also recognition on the same note…Additonal training to perform better..
    Freedom to express and demonstrate creativity as and when applicable.
    Employers should try and provide Quality Work Life to employees.  Also does the employer have the rules for all the employees..
    An exit interview is the best way to know as to why the employee quit the job..but even more better would be for the employer to try and understand the relevance of the facts mentioned in the exit interview and work towards their fulfillment or betterment..
    Internal support and assistance in times when a employee needs help with something..
    Employer should recognize the fact, a sound employee is a sound company..should provide continued training for the employee to make progress and move to different positions..
    Look at the past career graph and calculate the average time spent on each job..
    Encourage an employee to perform better and give him/her reasonable time to improve and demonstrate improved performance levels and appreciate the employee for sustained performance improvement and give a raise accordingly, in contrast to considering the option of “firing” the employee and “hiring” a replacement and spend on training costs..
    Factors that are upto the discretion of the employer are the only factors controllable..  a careful observation and analysis of an applicant before/during the hiring process has the potential to minimize the employee turnover..
     
     

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    #112929

    aishwarya
    Participant

    Few other pointers that can be focussed on :

    Sure enough, employees that terminate their service voluntarily, effect the customer satisfaction level and cause a reasonable concern with regards to the operational efficiency and proficiency, in the minds of the customers..
    Employees come from different walks of life, as we can see on their resume, they would have experience in different types of services..iam going to Services Industry for example.  In my opinion, at the time of hiring an employee, resume can be a very good reflective of the intentions of the applicant.  Not always can the management be blamed for an employee leaving the organisation.  The employee could have left just out of “Habit” of changing jobs and analysis of the same and questioning the same of the employee and measuring the seriouness and the trust-worthyness of the employee can reduce the chances of the same applicant quitting at a later date…This analysis when carefully done could reduce the training costs of hiring a new replacement..
    Peer Factors can also be considered while trying to reduce the employee turnover.  Colleagues and fellow workers can, to a great extent effect the performance and satisfaction levels of an employee..
    The whole working environment can be taken into picture..is it encouraging or criticizing….
    Flexibility of work timings…
    As it was mentioned before, definitely job descriptions and expectations and review based on the same standards and specifications
    Appreciation for an employee when he/she performs exceptionally and also recognition on the same note…Additonal training to perform better..
    Freedom to express and demonstrate creativity as and when applicable.
    Employers should try and provide Quality Work Life to employees.  Also does the employer have the rules for all the employees..
    An exit interview is the best way to know as to why the employee quit the job..but even more better would be for the employer to try and understand the relevance of the facts mentioned in the exit interview and work towards their fulfillment or betterment..
    Internal support and assistance in times when a employee needs help with something..
    Employer should recognize the fact, a sound employee is a sound company..should provide continued training for the employee to make progress and move to different positions..
    Look at the past career graph and calculate the average time spent on each job..
    Encourage an employee to perform better and give him/her reasonable time to improve and demonstrate improved performance levels and appreciate the employee for sustained performance improvement and give a raise accordingly, in contrast to considering the option of “firing” the employee and “hiring” a replacement and spend on training costs..
    Factors that are upto the discretion of the employer are the only factors controllable..  a careful observation and analysis of an applicant before/during the hiring process has the potential to minimize the employee turnover..
     
     

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    #112930

    Ken Feldman
    Participant

    Sure wish a bunch of you would figure out how to post only once.  It ain’t that hard!!!!

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    #112933

    Markert
    Participant

    Alas, oh one brandishing the new red light saber and the new Christmas cape, as well as salting and peppering from the new Don Julio matching-first-edition-autographed-boxed-gift-crystal-shakers…… Yes, it should not be difficult. Yet many among us are still learning the details of the technology Santa left under our Christmas tree/Hanukah Bush.
    Hanukah Bush, is he/she a governor somewhere?

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    #112934

    Ken Feldman
    Participant

    And/or President…..  Hope Santa brought you some nice things as well.  We haven’t heard from Vinny for a while so I assume he did get his Sponge Pants Bob and is busy trying to install it on the top of his local Burger King.

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    #113425

    sathish chandran
    Member

    Dear Nick,
    I will share my experience.
    lets go step by step. the project CTQ is to reduce the employee turnover by x%.
    now where do u start. – it is voc.
    the practical problem here is, if u use exit interview data, it will be biased and by experience i am telling u, it is 90% incorrect. It is because of the reason that, the person exiting wants to get out of the organization and with minimum problems. hence all statements and data are not factual.
    It is better to meet these exited people may be after some time or once they settledown in a new job and capture through an inteview, on what was the reason for their exit. Then you have a very probability of getting correct reasons.
    I am sure this first step might take lot of effort, but it is worth doing it.
    regards
    sathish

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    #113443

    Myriam Ochart
    Participant

    Employee turnover may be better used as indicator, as well as,  absenteeism, HR complaints, etc. of the underlying problem – employee satisfaction.  Collect these x’s and set it as your baseline – then develop what can be done to increase employee satisfaction – which will reduce turnover, absenteeism, HR complaints, etc.

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    #113444

    Shantam Sharma
    Member

    Data stratification done by you for the project will give you only the stand alone analysis. For this project your project should start with the VOC (Employee Left the organization). “Basically employee joins the Organization and left due to reporting Manager” Now your analysis should start with the data stratification and the stratification should be
    · Performance Rating in last two years (If quarterly then better)
    · If 360 feedback data available then rating of reporting manager
    · If you have past data of any Employee engagement survey / Satisfaction survey then rating of reporting managers
    · Function wise analysis (Department Wise) and incorporate your data stratification in this
    · Performance rating of Reporting managers – as Sublimation plays a vital role and results in employee turn over
    · Over all Business performance
    · Competitor analysis – Most HR projects are only done on Analysis based on employees, but turn over is the resultant of over all business performance so look at this angle which will give you the insight for turn over.

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    #113463

    Rajesh Diwan
    Participant

    Six Sigma is an important statistical tool.
    I had done some work on recruitment data and reduced cycle of recruitment and it involved reduction of NVA.
    I also helped to bring about a change in perspective and brought some soft and hard savings.
    I must admit that this will really help in finding the turnover % and eventually reduce it. But do looking into various factor and use pareto, as in most cases 80% of problem areas are from 20% and make sure to use RUMBA concept.
    Any help do let me know.
     
    Rajesh D.

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    #113465

    Usha
    Member

    Hi
    I’m fairly new to the world of Six Sigma and its concepts – what are the basic key indicators of Six Sigma.
    Usha

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    #113467

    Rajesh Diwan
    Participant

    Six Sigma is a statistical tool.
    Just like you use common sense to bring a change, in addition to common sense six sigma provide information on your processes, procedures and systems using data.
    In six sigma, you first detail a business case or problem area, like recruitment take lon time?
    The business case would state a problem. It is using symptoms to find a cure, it may be common cold or allergy it is just like doctors working on symptoms.
    Define a Business Case
    Define process
    Collect Data
    Examine Data
    Finally find point of control
    Improve systems
    I would detail a process to improve your system you are working on.
    Thanks
    Rajesh
     

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    #113531

    Gastala
    Participant

    Hello Nick – I am doing a Six Sigma project on voluntary termaintion in a manufaturing facility.  One of the strongest correlations I have found is between length of service and accidents – new hires have ~80% of the accidents. Records are not available to correlate length of service to quality & productivity but I am sure it exists. Would like to share more – how can we do that?

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    #113578

    Murray
    Participant

    Hi Glenn,
    My email is [email protected]

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    #135522

    Pete Draycott
    Participant

    Rajesh
    Whats the Rumba concept?

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    #149505

    ms law
    Participant

    I worked for Burger King as a Certified Shift Manager and found out why our store was losing so many employee told my dm about it and nothing got done and told him of other illegal things and nothing got done so I quit. I refuse to even go in to the store where I worked which was a training store.

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    #149506

    Mslaw
    Participant

    The main thing that would make me leave and did make me leave Burger is was the lack of respect that was given to me by my bosses and employees. I was undermined at every turn and suggestion I made died right there in that room and on top of that I was asked to do illegal things to cover other peoples mistakes.

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    #149511

    Hal
    Participant

    Higher staff turnover is an inevitable consequence of six sigma. Compare the two approaches:
    1. “In short, numbers-oriented thinking applies to people as much as it applies to processes and products. ” – Mikel Harry
    2. “Remove barriers that rob the hourly worker of their right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. Remove barriers that rob people in management and in engineering of their right to pride of workmanship.” – Deming  (12th point of business management)
    Treat people the way Harry recommends and you can expect them to leave !

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    #149515

    BritW
    Participant

    One problem is gettgn acurate information from your exit interviews.  The people doing these and the tool used should be very detailed to get at the actual causes for leaving.
    That being said – data collected will probably show that the majority of people who leave do so within the first year.  We found that by holding a 45 day roundtable with new hires, we found issues we could deal with while they were still there eliminate/reduce the effects for future new hires.

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    #179232

    Srinivasan
    Member

    hi i m uma i m doing my final year project i want the details about the employee turnover and questionnaire of employee turnover plz help me i want immediately

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