| Imagine for a moment this scenario from a | | | | keeping stakeholders happy. Change Management |
| frustrated Senior Manager of a large pharmaceutical | | | | practices can help. A Change Management plan with |
| organization: "Our organization has experienced a | | | | immediate response that can be implemented quickly |
| large turnover among project managers in the past | | | | will have a greater chance for project success and |
| year. This creates problems providing ongoing quality | | | | thus have less overall impact on the project's |
| and service to our stakeholders. We just don't know | | | | progression. Change Management can help:- Reduce |
| what is causing the problem!" Sound familiar? Well | | | | productivity loss |
| you're not alone. I remember that filmmaker Woody | | | | - Encourage employees who might be resistant to |
| Allen once said that "80% of success is showing up." | | | | change |
| However, the greater challenge is finding ways to | | | | - Minimize impact on productivity and quality |
| keep people there.Employee turnover is simply a fact | | | | - Reduce the effect on stakeholdersLeft unmanaged |
| of life in the business world. The days when | | | | issues can derail or even cause an entire project to |
| employees would stay and grow with a company for | | | | fail. Some questions to ask when developing a |
| the duration of their working life are gone. Studies | | | | Change Management plan are:- Responsibility |
| today reveal that individuals stay with their current | | | | breakdown |
| employer a maximum of five years before moving | | | | - Additional training required |
| on. While 0% turnover is simply unrealistic, increased | | | | - How much ramp up time will there be? |
| turnover in your organization could indicate a serious | | | | - Replacement of personnel - internal? |
| problem in your working environment.In a random poll | | | | - Overtime required |
| of project managers conducted for this article, the | | | | - Who can make a lateral move?A Change |
| following reasons were given for high turnover | | | | Management plan for employee turnover translates |
| among project managers at organizations today:- | | | | into a rapid, cost effective solution so projects can |
| Internal communication problems | | | | be delivered on time, on budget and on scope |
| - Poor time management | | | | without effecting stakeholders.Measuring Turnover at |
| - Trouble scheduling and controlling staff | | | | Your OrganizationMany organizations have little |
| - Lack of project manager authority and experience | | | | knowledge of the turnover rate at their organization. |
| - Poor staff training | | | | Moreover, they are unaware of the hidden costs |
| - No project management tools/systems | | | | that turnover can place on an organization once an |
| - Monetary compensationOrganizations are in a | | | | employee leaves. Measuring turnover is done simply |
| constant state of restructuring. The demand for | | | | and should be done yearly with the following |
| experienced and dedicated project managers is on | | | | formula:Turnover cost can also be measured and |
| the rise, however it seems that less experienced | | | | should be reviewed on a bi-yearly basis. The formula |
| personnel are attracted to the profession. So then | | | | below will help you to calculate turnover cost:Even |
| why do some organizations experience increased | | | | with all of this new found data, the answers to why |
| turnover?Generally speaking, the US Bureau of Labor | | | | employee turnover may be a problem at your |
| Statistics recently found that 40% of those that quit | | | | organization are still unclear. Moreover exit interviews |
| their jobs were doing so because they simply felt a | | | | will not give you the feedback you are looking for |
| lack of appreciation, of teamwork, that the | | | | since the most common reason given for leaving an |
| organization was perceived to not care about | | | | organization is always more money and a better |
| employees. Serious charges from 40% of the | | | | job.It is up to management to take the time to be |
| people.As of February 2005, the average turnover | | | | critical and look inward. Understand that a problem |
| rate in the United States was 3.1%. And while that | | | | exists. High turnover is a warning sign, a red flag that |
| number seems low, when you think about how many | | | | there are internal problems within your organization, |
| employed individuals there are in the United States | | | | some of which might be caused by senior |
| alone that number can be staggering. And yet many | | | | management. While the turnover of a few |
| organizations let turnover go undetected.CEO's just | | | | employees can hardly be considered reason to be |
| accept it as part of doing business in today's | | | | concerned, high turnover rates should make you |
| competitive marketplace. But more cost conscious | | | | question the working environment that your |
| and successful organizations will see the negative | | | | organization provides both emotionally, physically and |
| cost factors that turnover inevitably will have on | | | | financially. Ask yourself these questions:· Are |
| productivity, quality and service.F. Leigh Branham | | | | employees managed the way I would want to be |
| believes there are Six Truths About Employee | | | | managed? |
| Turnover. They are as follows:1. Turnover Happens | | | | · Are employees monetarily and emotionally |
| 2. Some Turnover Can be Desirable | | | | compensated? |
| 3. Turnover is Costly | | | | · Is the organization viewed as employee |
| 4. More Money is NOT Always the Answer | | | | oriented?It used to be that an employee was |
| 5. Management Holds the Key to Keeping Talent | | | | devoted and loyal to one company during the |
| 6. Reducing Turnover Starts with CommitmentAll of | | | | duration of their employment. Today however |
| the above information while general can also be | | | | employees are looking out for themselves more |
| applied to the profession of the project manager.The | | | | focused on their quality of life and the needs of their |
| Domino EffectThe loss of a project manager during | | | | family. That means that organizations today must |
| any phase of the project can signal disaster. Many | | | | motivate and inspire individuals to want to stay. |
| times while the methodologies for managing projects | | | | Engaging and empowering employees is one of the |
| are set forth by the PMO (Project Management | | | | great assets you have in the fight to reduce |
| Office), individuals have their own unique system for | | | | employee turnover. Data gathered by Development |
| completing tasks and organizing workloads. | | | | Dimensions International (DDI) shows that companies |
| Therefore, the ramp up time associated with trying | | | | or businesses with highly engaged employees |
| to decipher how an individual works can bring the | | | | experience a lower turnover rate. How does your |
| project to a screeching halt. Project staff members | | | | organization stack up?· Listen to employees |
| find themselves asking the following questions after a | | | | · Treat employees with respect |
| project manager departs:- Where did they leave off? | | | | · Praise a job well done |
| - Who were their contacts? | | | | · Ask employees for their input |
| - Were they organized? | | | | · Show trust with more responsibility |
| - Will there be ramp up time associated with | | | | · Be fair and impartial |
| understanding their job? | | | | · Be firm but not tyrannical |
| - Were they on schedule or will you need to bring | | | | · Apologize or admit when wrong |
| the project up to speed? | | | | · Pleasant working condition |
| - Is it more cost effective to divide the work or | | | | · Room for advancementWhile there is no one |
| train someone new? | | | | answer to the issue of employee turnover there are |
| - Have stakeholders been notified of any new | | | | many proven suggestions on how to limit the |
| developments? | | | | chances of it happening at your organization. We |
| - Has the budget been adhered to?In fact the | | | | tend to forget that the people working for us are |
| departure of a project manager influences all of the | | | | typically the ones getting the job done from start to |
| following:Scope - What needs to get done | | | | finish. We rely on their knowledge, their skills and |
| Time - Ramp up increases | | | | most of all their commitment to perform top quality |
| Cost - Overtime and training | | | | work in a timely fashion. As an employer, take the |
| Quality - Deadlines effect final outcome | | | | time to show your appreciation to those that work |
| Communication - Promises made cannot always be | | | | so hard to make your business a success. Most |
| kept | | | | importantly listen to their needs and find ways to |
| Procurement - Poor choice of outside vendorsSo | | | | show that you're committed to them. 80% of |
| how then can turnover be prevented among project | | | | success is showing up; make the other 20% |
| managers? As we discussed in the beginning, 0% | | | | increasing the ways you make them |
| turnover is improbable. Limited turnover however can | | | | stay.Resources:U.S. Bureau of Labor Statistics, |
| be viewed as desirable for organizations. For instance | | | | Washington, DC 20212-0001, © 2004 US |
| new employees are bound to bring new ideas and | | | | Department of LaborAdapted from "Keeping the |
| methods with them thus revitalizing what might have | | | | People Who Keep You in Business" by F. Leigh |
| been a stale environment to work in.But turnover in | | | | Branham © 2000© SSI, Inc. 2005 |
| and of itself is not fully understood. Many | | | | Successful Strategies International, Inc. (SSI) is a |
| organizations fail to realize the high costs associated | | | | training, leadership and mentoring organization, |
| with turnover at many levels. Turnover can become | | | | recognizing the need for quality training and services |
| a financial burden to your organization with | | | | that are both time and cost effective. For |
| recruitment and selection costs, training for new | | | | information on how SSI can help your business |
| employees, ramp-up time, increased work loads for | | | | create a Project Measurement System, give us a call |
| existing employees, overtime, reduced productivity | | | | at 877-390-3057 or visit us at is the President and |
| and that's just naming a few. In fact it costs a | | | | co-founder of Successful Strategies International, Inc. |
| company approximately 1/3 of a new hire's salary to | | | | (SSI). For over ten years, SSI has been a successful |
| replace an employee. If more organizations took the | | | | training, leadership and mentoring organization that |
| time to view turnover as a financial hit rather than | | | | specializes in Project Management and Leadership |
| passing it off as part of day to day business life they | | | | Development.Prior to forming SSI, Tom was involved |
| might save their organizations ten's of thousands of | | | | with the startup of PCI Global Inc., a training |
| dollars.There are ways to not only reduce the | | | | organization where he remained for over 14 years. |
| amount of turnover at your organization but also to | | | | Tom brings to SSI over 25 years of professional |
| be prepared for it. In the random poll of project | | | | experience in training and business management and |
| managers conducted for this article, the following | | | | development.Education: |
| suggestions were given as ways to reduce the | | | | BS from Widener University in Chester, PA |
| amount of turnover among project managers:- Offer | | | | MBA from Lehigh University in Bethlehem, |
| training opportunities to increase knowledge areas | | | | PAExperience: |
| - Assess the changing workforce culture | | | | As a corporate officer of SSI and previously at PCI |
| - Measure the companies turnover rate | | | | Global Inc., Tom has worked with such Fortune 1000 |
| - Become more employee oriented | | | | companies as Johnson & Johnson Worldwide, Wyeth |
| - Hire the right people | | | | International, CitiCard, Marriott International, Sony, |
| - Set up effective Change ManagementWhile change | | | | Standard Chartered Bank, Olympus, Cablevision, |
| in inevitable in an organization, you can be prepared. | | | | Pearson and many others to help resolve their |
| Issues arise in the normal course of project activities | | | | project management and leadership needs, thus |
| and timely resolutions are essential to maintaining | | | | improving quality and performance. |
| project timelines and team momentum as well as | | | | |