It is Time to Watch Your Retention Rates
Recently spoke to a new college graduate of computer science, who informed me about a new wave of job seekers. When I asked exactly what he meant by “new wave” I was told the real job competition is coming from people who have jobs currently and are looking for new positions with different companies.
So, the bottom line is while the unemployed are still looking for jobs in record numbers, they are competing with experienced people who have jobs currently. In fact, many of these job seekers are looking for lateral positions – even at the base level positions.
While this information is disturbing, it is expected. Why is it expected you may ask?
Because surveys conducted by the big employment sites and agencies have discovered an alarming trend. People are looking forward to the economic recovery SO THEY CAN LEAVE THEIR CURRENT EMPLOYER! And, by all counts, the percentages are very high – in the 50% range.
Why is this happening to our organizations at a time when stability and continuity are needed to better serve our customers? There seems to be several key issues and these include…
- A lack of fairness on the part of managers with their staff
- Overworked individuals
- Lack of employee recognition for existing jobs being done well
- More demands being placed on already highly stressed individuals
- Continued job cuts in the organization and asking the remaining employees to do even more
- Low to no salary increases
It appears retention of existing employees is being ignored at the strategic levels as well as the productivity levels of management, thus the problem is growing in pent up emotional stress. Thus, people will be leaving organizations in record numbers unless the organizations begin to place retention at the highest priority level.
I have heard from some of these executives and managers using a short time horizon thought process explain why they do not need to worry about retention. Yet, it appears their customers are worried about it. And, the shareholders should be worried, due to all the research regarding stock value and the level of retention of existing employees shows a direct correlation to the growth of stock values after recessions.
Take a moment over the next couple of days and give thought to how people are being recognized for their efforts during this period of difficult times. The recovery is coming and the job opportunities will be increasing, so what are you doing today to keep your best talent in-house. To replace talent is to replace both knowledge and historical prospective. Be careful in your evaluation of what is important and necessary. Your organizations long term results could be impacted.
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