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Does your company support employees who want to create a job or build a new career within the company? |
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Do the new recruits to the company seem to get the really choice assignments? |
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Are good workers leaving in this tight labor market, causing reduced productivity and increased costs? |
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Is your company spending vast amounts of money on recruitment rather than focusing on retention? |
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Do you feel you will need to leave your current employer in order to advance your career? |
Lets start by considering this dilemma from the employer's point of view...
Every day about 5 o'clock the CEO of company looks out her window and watches the employee parking lot empty. One by one, the company's most valuable assets leave and go home to family, friends, leisure interests and a strong labor market. As the CEO watches them she wonders...am I doing enough to keep my employee's happy. What makes me so sure they will come again tomorrow? And, sadly, her concerns are well founded.
Turnover is a growing problem for several reasons. First, today's workers feel empowered to move on. We know that the average employee in this new century will make ten to twelve job changes and will have more than five distinct careers over his or her lifetime. The old fashioned notion of building a career with one employer is all but lost. When things get boring or unproductive, top performers seek greener pastures.
According to the Bureau of National Affairs, monthly turnover for the first quarter of 2000 was 1.1 percent. This equates to an annual forecasted rate of 13.2%. Conservative estimates place the cost of turnover at 25% of annual salary plus benefits (Saratoga Institute and Kepner-Tregoe, Inc.). For a 2000 employee company with an average salary/benefit package of $60,000, the annual costs would be about 4 million dollars. That is a figure that should certainly draw the attention of senior management!
The true cost of losing a seasoned player is hard to estimate. There is the investment in development of the employee, the value of the knowledge and experience gained, and the lost productivity that also have to be considered.
Now, what about the employee's perspective?
Most employees think long and hard before resigning. Making a job change is an exciting notion but it is also fraught with unknowns. "Will I be able to meet or increase my salary level? Will the new company be stable? Will I enjoy my new boss and co-workers? Will I need to relocate, displace my family or deal with a nasty commute? Will I find an increased level of satisfaction or will I wish I had just stayed put?"
Logically, it makes more sense for employees to try to improve their current position before launching a job search.
Employees have a great deal of knowledge about the inner workings of the organization and are able to identify hidden opportunities. Further, they have an established network so they can build support for a reassignment, transfer or promotion. As an insider, they have power. Many employees start looking for a new job too soon and miss the opportunity to "recreate" themselves with their current employer.
Why do employees leave before exploring internal opportunities?
Fear, poor planning and lack of internal support are the usual culprits. Often fear sets in when the employee considers facing upper management ... especially if they have been shot down in the past. Putting ones damaged pride aside takes both inner strength and courage. But, the payoff can be substantial, for both the employer and the employee!
Employees need to ask themselves if they have been proactive in their career development. Have they built support for their future at the organization and let upper-management know about their contributions? Are they a good fit in their position? Have they done a mid-career self-assessment? Have they actively pursued professional development? Have they gone the extra mile when it was needed?
Many employers also contribute to voluntary turnover. Lack of internal support for "re-careering" is common. Few companies have an on-site career coach or mid-career assessment services to help their employees find the best career fit. Managers and supervisors are expected to coach their employees with little time or resources to get the job done. As a result, employees leave, taking job knowledge and untapped potential with them.
Scully Career Associates is available to contract with employers to provide internal career coaching and career development services! Retaining valued employees saves money, improves productivity and creates a positive morale amongst workers. Further, continuity and a consistent culture can be maintained. In order to compete in today's fast moving market, employers need to build a strong workforce. Innovation and resilience are built from a stable foundation. It simply makes sense to retain good workers and support their complex career needs rather than continue to scramble to recruit new talent.
Web Site Resources
Relocation Journal
www.relojournal.com
Latest news and trends in worldwide employee relocation.
Keep Employees
www.keepemployees.com
Consulting company products, modules and services designed to attract and retain employees.
Team Building, Inc.
www.teambuildinginc.com
Consulting company that facilitate team building and transitions to more participatory management.
Businesstown.com
Web guide to managing people.
www.businesstown.com/weblinks/people/index.asp
Article on motivation, "The Psychology of Optimal Experience."
Books to Read
Keeping Good People: Strategies for Solving the #1 Problem Facing Business Today, by Roger E. Herman, (Oakhill)
Keeping Your Valuable Employees: Retention Strategies for Your Organization's Most Important Resource, by Suzanne Dibble, (John Wiley & Sons)
Love `Em or Lose `Em: Getting Good People to Stay, by Beverly L. Kaye, Sharon Jordan-Evans, (Berrett-Koehler Publisher's)
The New York Times Pocket MBA Series: Leadership & Vision [UNABRIDGED], by Raman, Ph.d. Aldag, et al, (Listen & Live Audio, Inc.)
Recruit & Retain The Best, by Ray Schreyer, John Lewis, Jr. McCarter, (Impact Publications)
