Cutting Costs? Spend Money on Employee Retention, Says WisdomNet, Inc.

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The Aberdeen Group and WisdomNet, Inc. today announced a distinctive link between corporate success and the existence of workforce and succession planning programs.

Today WisdomNet, an emerging player in the human resources consulting and technology field, joined industry giants Monster, Inc. and Aberdeen Group to announce definitive research on the costs of worker turnover and the converse benefit of employee retention and succession planning programs.

The report entitled, “Retaining Talent: Retention and Succession in the Corporate Workforce,” not only provides recommendations for action, but also makes a clear link between formalized employee management programs and corporate success.

The bottom line is the bottom line, according to Brian Wilkerson, WisdomNet President and CEO.

He notes, “The Aberdeen study validates what we instinctually knew, that a clear correlation exists between bottom line results and long-term strategic human resource planning.”

The research, compiled by the Aberdeen Group, notes that 85 percent of HR executives reported that the single greatest challenge in workforce management is creating or maintaining their companies’ ability to compete for top talent and retain them over the long term.

Furthermore, the report found that best practice companies – those with five percent or less in annual employee attrition -- had a formalized retention and succession program for employees. The corporations thus had a lower cost per new hire and a lower cost of separation per employee.

But many companies still feel unprepared for employee vacancies. Of companies polled, 57 percent fear the inability to address long-term workforce requirements and 61 percent fear the potential cost of disruptive succession of company leaders.

“The report clearly indicates a need for succession planning in organizations,” notes Wilkerson, “both to limit the fear of executives and to positively impact a company’s success.”

For a copy of the complete report or other WisdomNet studies on this topic, contact Ron Kubit at 303-316-0381 or download a copy at http://www.wisdomnet.net/newsStory.asp?sub=press&item=aberdeen

About Aberdeen Group, Inc.

Aberdeen Group provides fact-based research and insights focused on the global, technology-driven value chain. Aberdeen’s benchmarking, market and solution assessments, sales acceleration programs, and conferences support Global 5000 value chain and technology executives—and the solution providers who serve them. For more information, visit http://www.aberdeen.com or call 617-723-7890.

About WisdomNet, Inc.

WisdomNet, Inc. creates consulting and innovative product solutions for Fortune 500 companies. WisdomNet’s vast and varied consulting experience in strategy, operations and human capital and their leading talent management system, ITMS™, generates metric driven results for clients. Visit http://www.wisdomnet.net or call 303-316-0381 for more information.

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