More Workers Walking
Even with a high jobless rate, employers are hearing "I quit," more often from workers.
Higher numbers of employees giving notice has resulted in a stepped-up effort to retain top talent, according to OI Partners, a global talent management firm.
For the past eight out of 10 months, the number of workers voluntarily leaving their jobs has surpassed those being laid off, including the past four straight months, according to the U.S. Department of Labor.
It's becoming more expensive to replace departing employees. It costs an average of 2.5 times an executive's salary, and 2 times a manager's pay, to replace them, including costs for recruitment and training, lost business, severance pay and benefits, according to OI Partners.
"It takes a higher toll on the workplace, where average workloads have increased," said Tim Schoonover, chairman of OI Partners.
How can employers make sure workers stick around?
Develop career paths for top performers and provide them with coaching to help them achieve these future positions. "More companies are concentrating on their "A-team" players and those they want to develop into top-tier employees," said Schoonover.
Sharpen employees' skills. This may involve on-the-job training or outside coaching.
Improve compensation and benefits. "Although higher pay is not the top reason why employees leave, companies that have recovered sufficiently to make up for past wage and benefit freezes, pay cuts, or small raises, will be expected to provide some financial reasons to stay," said Schoonover.
Recognize contributions. This can be as small as an e-mail or token of thanks.
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