The good news for Connecticut businesses is, the recession is easing. The bad news is, people who have stayed in their jobs throughout the bad economy due to economic fears of losing their incomes and not being able to support their families, and those that felt they were maltreated during the recession, are polishing up their resumes. Some experts believe that up to 80% of American workers are thinking about or are actually seeking new jobs. The negative impact to many companies may be considerable. From what we have seen in the past six months, employers have begun to implement programs to retain some of their most talented and key employees, including executives, managers, future leader and those who work on the front lines.
As turnover is rapidly increasing, many employers are preparing for additional employee turnover in the coming year. Once employers recognize that if key employee retention is a problem, even with an unemployment rate still hovering at 8%, the situation will intensify when more jobs become available in the marketplace as the economy continues to improve. Astute employers will implement those actions necessary to retain their key talent.
According to a survey completed OI Partners in Hartford:
- 90% of employers are concerned about turnover of high-potential employees
- 72% are concerned about losing sales and service employees
- 60% worry about middle-management turnover
- 45% are concerned about losing their senior level executives
Workers with the highest rates of turnover include operations and production workers, sales and marketing personnel, accounting and finance staff and information services.
Companies need to implement training programs, business coaching, enhanced benefits, financial incentives and well thought out succession plans, sooner rather than later to retain their top talent.
For those companies that will be filling vacated positions, it will be even more imperative that they hire “the right people for the right jobs” so that new employees’ cultural fit and learning curves will be greatly enhanced.
Don't let your organization's workforce become your competitors' "catch of the day." Be prepared, don’t let this inevitable scenario erode your bottom line.
University of Iowa study finds employee training might actually increase turnover-
--“Lack of advancement opportunities negates benefits of professional development programs.”
Please follow the hyperlink to an article referring to a study from June 2011 at the University of Iowa. Just when you thought you heard everything… Although it is true that if an employee does not see any career advancement opportunities in the organization, and the market place for new employees changes dramatically from the buyer’s market it is today, then employees will start picking their heads up and testing the marketplace. However in this marketplace, not many are looking to be the new person on the bottom rung in an organization.
When the economy shifts, any training, development and learning that employees received will be remembered and appreciated and should create new opportunities in the existing organization which ideally lines up with the newly acquired skills and better developed employees.
First of all, let us not forget that it was not employees who started the unbelievable lack of loyalty to their employers, it was the other was around. Call it right sizing, off-shoring, outsourcing, laying off…whatever you want. To me it is a lack of company loyalty and employees paying for bad business decisions made by employers. One of the fantastic changes that is coming out of this development, the genx ers and a lousy economy is that diversity, learning and development are really becoming important components of our compensations plans. This is fantastic.
To say that people would leave because they have no career opportunities is not a stretch at all, as a matter of fact, it is so obvious I am not sure why we call it a “finding in a study”. Aren’t the professional development programs designed to, among other things, provide new opportunities for growth within companies and organizations.
Furthermore, please let’s not forget that I can find studies that I would actually call “studies” that prove GenY ers are more motivated by learning and professional development that from Salary. They still will need opportunity for growth of course. That takes care of itself. The motivated GenX ers, while they are seeking work and life balance, will develop and market their growing value propositions to the existing companies. Employees who did not grow and develop and take advantage of company offerings will lose opportunity and attrition out. Wallah-growth opportunities for fully developed genx ers who are familiar with and comfortable with their changing and growing value proposition. Who benefits? The company, the employees, the customers, the vendors and the shareholders. Who loses? The companies that do not pay for learning and development and the employees too lazy to take advantage of these offerings.
It has been proven that professional development costs usually return something like 500% ROI. I guess that is only if you do NOT work at University of Iowa.