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 employees 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 NGHSs RN positions were filled before the Open Heart Program opened and the fees spent on traveling nurses / agencies declined by $68,000.

NGHSs 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 organizations 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 Administrations (ASHHRA), who honored both NGHS and Astron Solutions with the 2004 Best Practice" award at ASHHRAs 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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