Enter the Matrix: Retain and Motivate Employees through Career Matrix Programs
Enter the matrix…Career matrix programs, which link individual competency and varying levels of job complexity to support career advancement, are a low-cost motivational tool.
New York, NY (PRWEB) January 24, 2005 -- Employee retention and
motivation…why should employers care? A storm is brewing. National productivity
was up 3.9% in the second quarter and 1.9% in the third quarter of 2004. At the
same time, the unemployment rate was up 5.5% in October 2004. “Productivity is
up, but fewer people are doing more,” said Jennifer Loftus, SPHR, CCP, CBP, GRP,
National Director, Astron Solutions. “In addition, the number of 25-34 year old
workers will decline by 2.7 million by 2008, resulting in a predicted shortage
of 10 million workers within the next ten years.”
According to the
Society for Human Resource Management (SHRM), each employee who leaves a company
generates a cost. Conservative estimates place that cost at 30% of an employee’s
salary. For example, an organization that loses and replaces 150 employees a
year, each at an average annualized salary of $50,000, incurs an estimated
turnover cost of $2,250,000 in one year.
However, making changes to
recruitment and retention programs can generate positive fiscal returns. If the
same organization that replaced 150 employees were to implement changes,
financial savings would accrue. The organization would enjoy a $22,500 decline
in recruitment and retention costs with each 1% decline in turnover. By working
to improve the employment relationship, the organization would also reap the
recruiting benefits of a reputation as an employer of choice.
Enter the
matrix…
Career matrix programs, which link individual competency and varying
levels of job complexity to support career advancement, are a low-cost
motivational tool. Creating a career matrix involves various steps. Briefly,
these include defining the job level outcomes for three levels of complexity of
a job or job family, the activities and requirements that support the outcomes
at each level, the three levels of individual core competencies, and the
behavioral indicators as well as assessment processes that will be used to
determine individual competency. Once defined, employees are then slotted into
the matrix using defined criteria, and the guidelines are finalized for
placement. This is followed by an overlay of the current pay system and
establishment of compensation policies.
Astron Solutions’ client,
Northeast Georgia Health System (NGHS), like all hospitals, faced a nationwide
nursing shortage. They were having difficulty attracting new graduate nurses to
work at the organization, much less attracting RNs to work at their soon-to-be
unveiled Open Heart program. After implementing a career matrix program for
their Open Heart Program nursing staff, NGHS turnover is now at 5.2%,
significantly below the national average of 15.2%. Vacancy rates have also
dropped to 8.4%, again lower than the national average of 14.3% (average for Med
/ Surg and Critical Care.) In addition, 83% of NGHS’s RN positions were filled
before the Open Heart Program opened and the fees spent on traveling nurses /
agencies declined by $68,000.
NGHS’s career matrix program reinforced
their commitment toward employer of choice status, the link between human
resource programs, employee satisfaction, and responsibility for contributing to
NGHS’ financial objectives, as well as the organization’s commitment to
developing clinical expertise internally. Instituting the program also helped
establish NGHS as a “learning organization” and has provided them with a
competitive edge in local and regional recruitment of both new graduate and
experienced RN staff. The program has also required Nursing Management to become
more aware of their dual roles as career developers and patient care
coordinators. With the RN shortage continuing, NGHS is in a position to continue
to meet growing patient demands, while addressing career advancement desires of
the new generation of RNs. The success of the program did not go unnoticed by
the American Society for Healthcare Human Resources Administration’s (ASHHRA),
who honored both NGHS and Astron Solutions with the 2004 “Best Practice” award
at ASHHRA’s annual conference.
Far from science fiction, career matrix
programs are proven, low-cost ways to keep turnover and vacancy costs down,
while at the same time, supporting employees’ career goals. To learn more about
career matrix programs, please call Astron Solutions, or visit their website at
http://www.astronsolutions.com. Astron Solutions is a
consulting firm dedicated to the delivery of HR consulting services and
supportive technology.
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Source : http://www.prweb.com/releases/2005/2/prweb198611.htm