One energy company we examined has developed its own Web-based matrix to rate turnover risks. It overlays the likelihood that an individual will leave with the impact of the individual's position on the business's overall performance, ranking factors that influence the individual's retention outlook and the position's criticality on a scale from low to high risk. To keep the rankings as objective as possible, the company minimizes complexity, focusing on a limited set of risk factors.

First, the company rates position risk in terms of attributes such as:

• experience or competency requirements;
• barriers to entry, through education or specialization; and
• the position's impact on business activities.

Then it assesses individuals holding positions deemed as having high position risk. The individual risk factors include:

• total compensation vs. market compensation;
• future career opportunities both inside and outside the company; and
• exposure to senior management, and the extent to which those experiences have been positive.

Each finance employee's initial ranking is determined by his or her manager, with oversight and calibration from a senior finance team consisting of the heads of treasury, tax, controllership, and financial planning and analysis. The finance HR function helps manage the process. The final assessments are presented to the CFO so that action can be taken quickly to minimize turnover risk to the finance function.

Ongoing management of the matrix enables senior executives to actively monitor whether individuals with elevated retention risk hold crucial business positions. This helps the company focus retention efforts on high-risk talent.

See the article:

• Convince Your Best Employees to Stay