One energy company we examinedhas developed its own Web-based matrix to rate turnover risks. Itoverlays the likelihood that an individual will leave with theimpact of the individual's position on the business's overallperformance, ranking factors that influence the individual'sretention outlook and the position's criticality on a scale fromlow to high risk. To keep the rankings as objective as possible,the company minimizes complexity, focusing on a limited set of riskfactors.


First, the company rates position risk in terms of attributessuch 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 havinghigh position risk. The individual risk factors include:

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

Each finance employee's initial ranking is determined by his orher manager, with oversight and calibration from a senior financeteam consisting of the heads of treasury, tax, controllership, andfinancial planning and analysis. The finance HR function helpsmanage the process. The final assessments are presented tothe CFO so that action can be taken quickly to minimize turnoverrisk to the finance function.


Ongoing management of the matrix enables senior executives toactively monitor whether individuals with elevated retention riskhold crucial business positions. This helps the company focusretention efforts on high-risk talent.

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