BOSSES SWEAR BY THE 90-DAY RULE TO KEEP WORKERS LONG TERM - Kanebridge News
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BOSSES SWEAR BY THE 90-DAY RULE TO KEEP WORKERS LONG TERM

Chipotle, Waste Management and others gear hiring around reaching a milestone they say is critical to employee retention.

By Chip Cutter
Wed, Jul 20, 2022 4:44pmGrey Clock 6 min

In the quest to retain workers, companies are sharpening their focus on a very specific common goal: 90 days.

Hold on to an employee for three months, executives and human-resources specialists say, and that person is more likely to remain employed longer-term, which they define as anywhere from a year on in today’s high-turnover environment. That has led manufacturing companies, restaurants, hotel operators and others to roll out special bonuses, stepped-up training and new programs to prevent new hires from quitting in their first three months on the job.

Heating and air-conditioning company Carrier Global Corp. began pairing new hires with a more experienced “buddy” in its manufacturing facilities after discovering most attrition happened before an employee hit the three-month mark, said Chief Executive David Gitlin. Executives at Minneapolis video software company Qumu Corp., have retooled training and onboarding processes partly around the goal of reducing what the company calls “quick quits,” or departures within three months, said Mercy Noah, Qumu’s vice president of human resources.

Some franchisees for McDonald’s Corp., Wendy’s Co. and others advertise new-hire bonuses of hundreds of dollars, many payable after 90 days; CVS Health Corp. gives warehouse workers at some of its facilities a $1,000 bonus if they stay on the job for three months.

“If you see someone hit the three-month mark, the reality is, they’re going to be here for at least a year,” said Marissa Andrada, chief people officer at Chipotle Mexican Grill Inc. Chipotle has focused on consistent scheduling and giving new hires a clear explanation of company operations and benefits, she said. The tactics are designed to help employees be comfortable in its restaurants and motivated to stay, she said.

This summer’s labor market is among the tightest in decades, and finding enough workers, let alone desirable workers, remains so difficult that companies are increasingly motivated to retain new hires. Three months has traditionally been considered enough time for employees to begin to prove themselves, veteran human-resources executives say. Many companies also still enforce 90-day probationary periods, with some withholding benefits like health insurance in the meantime.

Just as it can take weeks of consistent effort to develop an exercise habit that sticks, employers have found that 90 days is typically enough time for workers to get into a steady routine of a new job. This can be particularly important for hourly employees in higher-turnover industries like hospitality or manufacturing, executives say, where workers have plenty of options.

The unemployment rate stood at 3.6% last month. Employees have benefited from a labour market that has given them the ability to more easily change jobs for higher pay. Workers are flexing their power in other ways, too. Employees at an Apple Inc. store in Maryland voted earlier this month to unionize, creating the first Apple retail union in the U.S., adding to unionization drives at companies such as Starbucks Corp.

Patrick Whalen, director of human resources and organizational development at the aerospace manufacturing company TAT Limco in Tulsa, Okla., watched late last year as a number of the company’s welders, assemblers and others left for jobs that, in some cases, paid only a dollar or two more an hour. Some workers, he said, barely stuck around for a month. Frustrated, Mr. Whalen began making a case inside the company that it needed to rethink its approach to bringing on new employees. He wanted a 90-day plan.

“It seems to be a magic window,” he said.

After he explained that every new hire who left early cost the company thousands of dollars in training expenses, time and lost revenue, Mr. Whalen said managers agreed to a change. In January, the company instituted a new 90-day onboarding process.

TAT Limco hired an onboarding coordinator to oversee every new employee’s entry into the company. Managers now contact employees before their first day, part of an effort to provide more contact points with new hires so they don’t get lured to a rival. Supervisors set weekly expectations for new employees to guide them in their first three months, giving staffers structured goals and time to get up to speed.

Turnover, at 37% in January, has fallen by more than half, to 16% today, Mr. Whalen said. Newer employees are also sticking around. In the first three months of the year, the company lost one of 45 employees it hired. “If we lose somebody within the first month or two months or three months, it’s very rare,” Mr. Whalen said.

There are signs the labour market is cooling, particularly among salaried workers. Companies including Tesla Inc. and Netflix Inc. have announced plans to cut staff, and some employers have rescinded job offers to new hires. Yet for hourly jobs across a broad range of sectors, demand for workers remains historically high.

Workers say they often know within weeks if a job will be a fit. Aliyah Abbott, a 23-year-old rising senior at Temple University, said she left a marketing internship in Philadelphia recently after about a month. Though Ms. Abbott said she had never before quit a role and hesitated to leave the internship before it ended this summer, she thought the position turned out to be different than initially presented to her. It paid less than she thought she had been promised, with some compensation based on a commission structure, she said.

“By the third or fourth week, you’re kind of like, ‘Is this right for me?’” she said. She quickly found a new job working as a marketing coordinator. “The bigger picture with jobs is just trial and error sometimes,” she said.

Much of the success of a job in the first three months also comes down to an employee’s connection with a company, executives say. At the San Francisco software company Intercom, new hires at all levels are asked to embark on what the company calls a listening tour to understand the company’s operations and meet with as many colleagues as possible. For lower-level staffers, that might last two weeks; for executives, it could stretch to six.

“The first 90 days is almost like an extended interview process by the employee of the company,” said L. David Kingsley, Intercom’s chief people officer. “Those are the critical moments where someone is truly deciding.”

Some companies, like workplace software provider Envoy, have hired staffers in recent months who will check in with hiring managers and new employees to see how the experience is going for all sides. “That first 90 days are when you have people that either say, ‘This was the best thing I ever did,’ or ‘I made a mistake because it’s not what I thought it was going to be,’” said Annette Reavis, Envoy’s chief people officer.

Waste Management Inc. plans to roll out a tool that will allow managers to get real-time feedback from their teams; workers will be able to leave comments anonymously. The tool will be available to both new workers in their first months on the job and veteran employees. “You’re going to get tidbits from your folks,” said John Morris, Waste Management’s chief operating officer. “It’s going to be, ‘Hey, this is what my group is telling me what’s on their minds.’”

The trash-and-recycling hauler studied its employee turnover data and found the first 120 days to be particularly critical for keeping new staffers as they learn their roles. The company pairs new hires with more experienced staffers and sends some workers to in-person training in Arizona and Florida.

Many factors play into retaining a new worker, Mr. Morris said, including educational benefits and pay. But the company wants to make sure its managers are also equipped to respond to issues in a variety of channels, one reason for the new tool.

“We all get a ton of feedback. But if it’s 800 pages, nobody’s going to read it,” Mr. Morris said. “So how do you give these frontline leaders tidbits, nuggets, actionable things that they can do?”

Jennifer Sick, a 29-year-old based in Richfield, Ohio, took a position in late February as a sales representative at Group Management Services Inc., a provider of payroll, outsourcing and other services to small businesses. The company has a 90-day probationary period, with clearly outlined goals, the first Ms. Sick experienced in her career.

At a minimum, Ms. Sick said managers required her to make 300 cold calls a week and to visit two small businesses; if she wanted to achieve a bonus at 90 days, she could make 375 calls a week, and visit four businesses. Managers checked in repeatedly to see if she needed anything, she said.

“It was a constant communication of, ‘How are you feeling? How are you doing?’” she said.

She completed day 90 on a Friday in early June, and received the bonus for making additional calls and visits. By the following Monday, she also had the keys to a company-issued Hyundai sedan and gas card, another perk for moving past her probationary period.

“I worked really hard in my 90 days because I just saw my future at this company,” she said.

Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: June 29 2022.



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As Paris makes its final preparations for the Olympic games, its residents are busy with their own—packing their suitcases, confirming their reservations, and getting out of town.

Worried about the hordes of crowds and overall chaos the Olympics could bring, Parisians are fleeing the city in droves and inundating resort cities around the country. Hotels and holiday rentals in some of France’s most popular vacation destinations—from the French Riviera in the south to the beaches of Normandy in the north—say they are expecting massive crowds this year in advance of the Olympics. The games will run from July 26-Aug. 1.

“It’s already a major holiday season for us, and beyond that, we have the Olympics,” says Stéphane Personeni, general manager of the Lily of the Valley hotel in Saint Tropez. “People began booking early this year.”

Personeni’s hotel typically has no issues filling its rooms each summer—by May of each year, the luxury hotel typically finds itself completely booked out for the months of July and August. But this year, the 53-room hotel began filling up for summer reservations in February.

“We told our regular guests that everything—hotels, apartments, villas—are going to be hard to find this summer,” Personeni says. His neighbours around Saint Tropez say they’re similarly booked up.

As of March, the online marketplace Gens de Confiance (“Trusted People”), saw a 50% increase in reservations from Parisians seeking vacation rentals outside the capital during the Olympics.

Already, August is a popular vacation time for the French. With a minimum of five weeks of vacation mandated by law, many decide to take the entire month off, renting out villas in beachside destinations for longer periods.

But beyond the typical August travel, the Olympics are having a real impact, says Bertille Marchal, a spokesperson for Gens de Confiance.

“We’ve seen nearly three times more reservations for the dates of the Olympics than the following two weeks,” Marchal says. “The increase is definitely linked to the Olympic Games.”

Worried about the hordes of crowds and overall chaos the Olympics could bring, Parisians are fleeing the city in droves and inundating resort cities around the country.
Getty Images

According to the site, the most sought-out vacation destinations are Morbihan and Loire-Atlantique, a seaside region in the northwest; le Var, a coastal area within the southeast of France along the Côte d’Azur; and the island of Corsica in the Mediterranean.

Meanwhile, the Olympics haven’t necessarily been a boon to foreign tourism in the country. Many tourists who might have otherwise come to France are avoiding it this year in favour of other European capitals. In Paris, demand for stays at high-end hotels has collapsed, with bookings down 50% in July compared to last year, according to UMIH Prestige, which represents hotels charging at least €800 ($865) a night for rooms.

Earlier this year, high-end restaurants and concierges said the Olympics might even be an opportunity to score a hard-get-seat at the city’s fine dining.

In the Occitanie region in southwest France, the overall number of reservations this summer hasn’t changed much from last year, says Vincent Gare, president of the regional tourism committee there.

“But looking further at the numbers, we do see an increase in the clientele coming from the Paris region,” Gare told Le Figaro, noting that the increase in reservations has fallen directly on the dates of the Olympic games.

Michel Barré, a retiree living in Paris’s Le Marais neighbourhood, is one of those opting for the beach rather than the opening ceremony. In January, he booked a stay in Normandy for two weeks.

“Even though it’s a major European capital, Paris is still a small city—it’s a massive effort to host all of these events,” Barré says. “The Olympics are going to be a mess.”

More than anything, he just wants some calm after an event-filled summer in Paris, which just before the Olympics experienced the drama of a snap election called by Macron.

“It’s been a hectic summer here,” he says.

Hotels and holiday rentals in some of France’s most popular vacation destinations say they are expecting massive crowds this year in advance of the Olympics.
AFP via Getty Images

Parisians—Barré included—feel that the city, by over-catering to its tourists, is driving out many residents.

Parts of the Seine—usually one of the most popular summertime hangout spots —have been closed off for weeks as the city installs bleachers and Olympics signage. In certain neighbourhoods, residents will need to scan a QR code with police to access their own apartments. And from the Olympics to Sept. 8, Paris is nearly doubling the price of transit tickets from €2.15 to €4 per ride.

The city’s clear willingness to capitalise on its tourists has motivated some residents to do the same. In March, the number of active Airbnb listings in Paris reached an all-time high as hosts rushed to list their apartments. Listings grew 40% from the same time last year, according to the company.

With their regular clients taking off, Parisian restaurants and merchants are complaining that business is down.

“Are there any Parisians left in Paris?” Alaine Fontaine, president of the restaurant industry association, told the radio station Franceinfo on Sunday. “For the last three weeks, there haven’t been any here.”

Still, for all the talk of those leaving, there are plenty who have decided to stick around.

Jay Swanson, an American expat and YouTuber, can’t imagine leaving during the Olympics—he secured his tickets to see ping pong and volleyball last year. He’s also less concerned about the crowds and road closures than others, having just put together a series of videos explaining how to navigate Paris during the games.

“It’s been 100 years since the Games came to Paris; when else will we get a chance to host the world like this?” Swanson says. “So many Parisians are leaving and tourism is down, so not only will it be quiet but the only people left will be here for a party.”