Blog



What if HR Was Paid to Reduce Employee Turnover?


Greta Roberts, CEO Talent Analytics, Corp.

Talent Acquisition (HR) organizations are paid to optimize the process of finding and hiring someone.  This includes how fast candidates are found, how fast an offer is made and accepted, how fast a new person starts in the vacant role or open requisition.  HR calls this “quality of hire”.  It should really be called “quality of the hiring process”.

On the other hand, Line of Business (LOB) Leaders are paid when their employees last long enough in their roles to perform and provide value to the business.  When line of business employees deliver results, the business makes money.  It can pay its bills.  It can pay its employees and stockholders. Everyone is happy.

See the disconnect?  HR is paid to place people in jobs quickly, while the Line of Business needs them to last in their jobs.  HR “cares” if they last but they aren’t paid to pay attention to how long their candidate’s last after the candidate has accepted their offer letter.

In fact, other than a passing comment, HR often isn’t given data back about how long their candidates lasted in their roles.

What if this changed?  What if HR was paid not only to hire quickly but to also be responsible for reducing turnover in roles that have a lot of volume?  What would need to change to make this happen?  How would this affect day to day operations?

  1. The newly designated turnover specialists in HR would need to have their compensation tied to a reduction in turnover, particularly in the 3 – 4 roles that have the highest volume (Call Centers, Sales and the like). Perhaps this would be someone on the Talent Acquisition team, or someone on the workforce analytics team.
  2. The Turnover Specialist would be likely to quickly form a relationship with the appropriate lines of business to learn about their business needs, the data they have available and to see how they could work together to reduce turnover.
  3. The Turnover Specialist would quickly begin to access and clean available turnover data. They’d dig into it to make sure it was accurate. They’d look for trends and patterns.
  4. The Turnover Specialist would soon try to figure out if they could predict individuals who were likely to turnover quickly before they were even hired.
  5. And finally, turnover would go down. When you focus someone and their compensation (or a hired a company like Talent Analytics, Corp to assist you) on a specific problem, things really change for the better.

There are few high cost areas in HR that are as ripe for predictive analytics as predicting turnover — before it happens.  It’s relatively easy (if you know what you’re doing).  It’s an area where HR can quickly (think 4 – 5 months) deliver an incredible and measurable value back to the business.

Actually, I don’t understand why there aren’t Turnover Specialists in every single mid – to large organizations today.




Posted in Tags: , , , , , , , , ,

2 Responses to “What if HR Was Paid to Reduce Employee Turnover?”

  1. Harry Yates Says:

    March 13th, 2017 at 8:55 pm

    Are you able to share any other detailed information around this process? We’re just starting to look at analytics around employee turnover and attrition. We have selected a department, starting to build a HR dashboard and will look to collate data. Do you have any advice on timeframes, areas to investigate, what to look for etc?

  2. Carla Gentry Says:

    July 31st, 2017 at 2:33 pm

    Sure! I hope this link helps -> https://www.slideshare.net/RMEvents/835-keynote-groberts

Leave a Reply