Prevent employee attrition: Some McKinsey research
Nice report here from McKinsey on people analytics and “issues HR is getting wrong,”including this:
Too often, companies seek to win the talent war by throwing ever more money into the mix. One example was a major US insurer that had been facing high attrition rates; it first sought, with minimal success, to offer bonuses to managers and employees who opted to remain. Then the company got smarter. It gathered data to help create profiles of at-risk workers; the intelligence included a range of information such as demographic profile, professional and educational background, performance ratings, and, yes, levels of compensation. By applying sophisticated data analytics, a key finding rose to the fore: employees in smaller teams, with longer periods between promotions and with lower-performing managers, were more likely to leave.
I’d say this is a pretty crucial paragraph. First off, it addresses the biggest concern of executives — cost.
And what did they find? Exactly what you’d expect. Employee attrition comes from terrible managers and people who aren’t getting rewarded for the work they do.