In the latest in our series of case studies for analytics driving efficiencies, we see Deloitte focussing on how HR analytics helped a customer reduce staff turnover rates and achieve better talent outcomes in terms of leadership pipelines, cost avoidance, efficiency gains and improved morale - the right people in the right roles.
Problem to fix - high staff turnover rates
Managers were relying on their ‘gut-feel’ about how to retain staff, which was mainly focused around increasing compensation. However, this had not stopped employees (and indeed key employees) leaving, especially from the sales force. Meaning the business wasted time and money training and developing employees only to have them leave to the competition.
Analytics showed there was actually little relationship between compensation and staff turnover. Other variables, such as the length of time in current position, development opportunity and supervisor tenure were the key determinants of turnover.
A retention program was developed - every employee has a departure risk factor calculated against key criteria, the data for which is analysed regularly;
- development opportunities
- job rotations
- stretch assignments
- career discussions with “high risk” individuals developed.
Of course, the relevant data needs to be captured somewhere, but in doing so talent decisions become ‘data-based’ and across the whole breadth of employees.
In the six months following implementation, staff turnover amongst the salesforce significantly reduced – enabling the business to meet its growth targets.