Orlando, Fla. — April 4
TalentKeepers, a global employee retention firm, has released its annual study of employee turnover trends that included 547 major U.S. based firms representing every major industry.
For the first time, the forecast by employers turned decidedly gloomy when asked to forecast the trend for this year — only 3 percent predict turnover will decrease for their industry, and 45 percent forecast an increase in turnover.
Another 52 percent see the problem remaining the same for 2007.
Early-tenure turnover also has been increasing, with many workers leaving jobs after less than a year.
The study identified fairly definable periods in the employee life cycle where the risk of voluntary turnover is highest.
While few workers quit during initial training, which is only 1 percent of all turnover, the number quickly jumps to 15 percent during the first 90 days. Another 25 percent leave around one year into their jobs.
Added together, 59 percent of all attrition is occurring in the first year of employment and begins declining only after the one-to-two-year period.
These days, no one is thinking about keeping workers forever. The new thinking is focused on extending the average length of stay.
Turnover’s impact on organizations continues to rise, as well. When asked to report the areas most affected by the loss of employees, executives cited lost productivity and service quality at the top of the list.
“Employee turnover is a business problem — no longer can the loss of talented employees be viewed as a 'people' problem, where responsibility and solutions reside with the human resources department,” said Craig Taylor, who led the study for TalentKeepers. “Retention strategies can best be successful through an organizationwide commitment and accountability for results.
“If a business problem was costing millions of dollars a year, wouldn’t you hold leaders throughout the organization accountable for fixing it?”Filed under: Measurement