How to Reduce Unwanted Turnover

Reducing turnover is a balance between finding the right talent and retaining that talent.

According to the Center for Nonprofit Management’s (CNM) Southern and Central Compensation and Benefits Report, 36% of participants of the report have trouble retaining their top performers due to their inability to offer a competitive salary and benefits package.

Creating Job Descriptions

Why are job descriptions important? While they give applicants a sense of what the job entails, it provides the employer with a clear understanding of how each job fits into the company’s structure, helps achieve the organization’s goals, and defends against claims of hiring or promotion discrimination.

Unpaid Internships

Internships can be a valuable experience for both the employer and intern. For those with little or no experience, unpaid internships can present an opportunity to acquire experience, skills, and recommendations for the future. Employers also have an opportunity to receive labor and especially small businesses or startups that do not have abundant resources can find this arrangement effective. In order to employ unpaid interns, employers must follow the six-factor test used by the DOL and the DLSE.

Pregnancy Disability Leave

In the state of California, employers with five or more employees are required to provide pregnant employees up to four months of job-protected pregnancy disability leave. The employee cannot be subject to termination simply because she used pregnancy disability leave “PDL”. Some exceptions apply such as if the company planned to have a layoff regardless if the employee took time off or not. The employer is required to reinstate the employee to the job she held before PDL started.

Who is eligible for PDL? All employees who work for covered employers are eligible upon hire. PDL can be used for any time the eligible employee is disabled by pregnancy, childbirth, or a related medical condition.  Employers are required to post posters and include a PDL policy in the employee handbook.

PDL can run concurrently with the federal Family Medical Leave Act (FMLA) but not with the California Family Rights Act (CFRA).

Once and employee exhausts PDL an employee can apply for Paid Family Leave “PFL” which runs concurrent with CFRA (if organization has more than 50 employees. PFL is paid leave up to six weeks after disability runs out that can be used to bond with a new baby

If an organization has more than 50 employees, after the max of four months of PDL, an employee can take up to 12 weeks of CFRA leave (potentially 6 weeks paid under PFL) for bonding with the child. This must be taken immediately after PDL ends or within a year of childbirth. Employees are eligible for FMLA and CFRA if their organization has more than 50 employees, they have worked for  a total of one year of employment and worked more than 1,250 hours during the 12 months. The time off work on a leave still counts towards an employee’s one year of employment. The Americans with Disabilities Act (ADA) is not applicable to pregnant employees because the time off request relates to the care of a child.

Shift Differentials

Under the Fair Labor Standards Act, an employer is not required to provide shift differential pay. However, if an employer chooses to do so, the differential pay must be included in the regular rate of pay for purposes of calculating overtime. Because shift differential pay is not required, employers are free to establish their own policies on shift differentials as long as they meet minimum wage and overtime law.

Unlimited Vacation

Unlimited vacation time is a perk that is rising in popularity. The popular pros of this policy are more flexibility, cost effective, and an added recruiting tool. On the other hand, cons that could arise are abuse, unfairness, and problematic planning. But should your company do it?  Here are some things to consider in order for this policy to work.

1.     Make sure employees are actually able to take time off. Some companies disguise this policy as a way to avoid paying for vacation time when employees do not have the opportunity to take vacation.

2.     Unlimited vacation should be different than sick days.

3.     Unlimited vacation is optimal in environments where employees are not required to be onsite to complete their job. Places that are more project-based or client-based could be possible candidates for an unlimited vacation policy, while sales organizations would have higher difficulty implementing this policy.

4.     Offer vacation fairly. It will be difficult to balance granting vacation to employees at the same time. Management will have to pick a vacation schedule that is fair throughout the company

Surprisingly, most employees feel obligated to be results oriented and only take vacation after they have finished their responsibilities. Also, companies could put a cap on how much time people can take off at once if overuse were to occur.