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Employee retention


WHY PEOPLE QUIT THEIR JOBS

Tech surveillance and social media monitoring point to new triggers.
From the Magazine (September 2016)
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Leer en español
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Paul Garland

Imagine that you’re looking at your company-issued smartphone and you notice an
e-mail from LinkedIn: “These companies are looking for candidates like you!” You
aren’t necessarily searching for a job, but you’re always open to opportunities,
so out of curiosity, you click on the link. A few minutes later your boss
appears at your desk. “We’ve noticed that you’re spending more time on LinkedIn
lately, so I wanted to talk with you about your career and whether you’re happy
here,” she says. Uh-oh.

It’s an awkward and Big Brother–ish scenario—and it’s not so far-fetched.
Attrition has always been expensive for companies, but in many industries the
cost of losing good workers is rising, owing to tight labor markets and the
increasingly collaborative nature of jobs. (As work becomes more team-focused,
seamlessly plugging in new players is more challenging.) Thus companies are
intensifying their efforts to predict which workers are at high risk of leaving
so that managers can try to stop them. Tactics range from garden-variety
electronic surveillance to sophisticated analyses of employees’ social media
lives.

Some of this analytical work is generating fresh insights about what impels
employees to quit. In general, people leave their jobs because they don’t like
their boss, don’t see opportunities for promotion or growth, or are offered a
better gig (and often higher pay); these reasons have held steady for years. New
research conducted by CEB, a Washington-based best-practice insight and
technology company, looks not just at why workers quit but also at when. “We’ve
learned that what really affects people is their sense of how they’re doing
compared with other people in their peer group, or with where they thought they
would be at a certain point in life,” says Brian Kropp, who heads CEB’s HR
practice. “We’ve learned to focus on moments that allow people to make these
comparisons.”

Some of the discoveries are unsurprising. Work anniversaries (whether of joining
the company or of moving into one’s current role) are natural times for
reflection, and job-hunting activity jumps by 6% and 9%, respectively, at those
points. But other data reveals factors that have nothing directly to do with
work. For instance, birthdays—particularly midlife milestones such as turning 40
or 50—can prompt employees to assess their careers and take action if they’re
unhappy with the results. (Job hunting jumps 12% just before birthdays.) Large
social gatherings of peers, such as class reunions, can also be
catalysts—they’re natural occasions for people to measure their progress
relative to others’. (Job hunting jumps 16% after reunions.) Kropp says, “The
big realization is that it’s not just what happens at work—it’s what happens in
someone’s personal life that determines when he or she decides to look for a new
job.”

Technology also provides clues about which star employees might be eyeing the
exit. Companies can tell whether employees using work computers or phones are
spending time on (or even just opening unsolicited e-mails from) career
websites, and research shows that more firms are paying attention to these
things. Large companies have also begun tracking badge swipes—employees’ use of
an ID to enter and exit the building or the parking garage—to identify patterns
that suggest a worker may be interviewing for a job. Companies sometimes retain
outside firms, such as Joberate, to monitor employees’ social media activity for
indications that people are scouting for new options. (Among other things, such
firms look at whom employees are connecting with.) Joberate CEO Michael
Beygelman compares this emerging science to the way that credit scoring can
predict which consumers will fail to repay loans. Although some companies hire
Joberate to help them anticipate which individual employees might think of
leaving, others use the intelligence to zero in on departments or locations with
high “likely to leave” scores so that they can work on team building and overall
engagement. One large tech company uses it to target people it might lure away
from other firms. Some investors use it to identify companies that may soon face
turnover in key positions. “If the CIO and the head of sales are both likely to
be job hunting, you have to ask what’s up,” Beygelman says.

Lori Hock, the CEO of Hudson Americas, a recruitment process outsourcing company
that uses Joberate, values predictive intelligence because it helps her reduce
clients’ attrition—and spot things that may be driving it. “Is it a bad
manager?” she says. “Is there a training component? Are we undervaluing certain
positions? It gives you a nice opportunity to think about what the trigger might
have been—and to ask questions before you lose talent.”

“THIS IS AN EARLY-WARNING SIGNAL”

Genevieve Graves studied astrophysics before joining hiQ Labs, a start-up that
applies predictive analytics to talent ...



Some firms, such as Credit Suisse, take this tack with employees identified as
being at risk of leaving: Internal recruiters cold-call the employees to alert
them to openings inside the company. In 2014 the program reduced attrition by 1%
and moved 300 employees, many of whom might otherwise have left, into new
positions. Credit Suisse estimates that it saved $75 million to $100 million in
rehiring and training costs.

Researchers agree that preemptive intervention is a better way to deal with
employees’ wandering eyes than waiting for someone to get an offer and then
making a counteroffer. CEB’s data shows that 50% of employees who accept a
counteroffer leave within 12 months. “It’s almost like when you’re in a
relationship and you’ve decided you want to break up, but your partner does
something that makes you stick around a little longer,” Kropp says. “Employees
who accept a counteroffer are most likely going to quit at some point very
soon.”

About the Research: “The New Path Forward: Creating Compelling Careers for
Employees and Organizations,” by CEB (white paper)
A version of this article appeared in the September 2016 issue (pp.20–21) of
Harvard Business Review.
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CINT AB

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