Survey: U.S. Executives Rank Lost Productivity as the #1 Issue Impacted by Employee Turnover

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According to TalentKeepers’ 2008 Employee Turnover Trends research report, U.S. executives rank lost productivity as the #1 issue impacted by employee turnover. Lost productivity was followed by diminished service quality, decreased employee morale, lost organizational knowledge, and higher recruiting costs.

It used to be that employee turnover was considered solely an HR problem, but now top executives are beginning to see the far-reaching impact of turnover and its implications

According to TalentKeepers’ 2008 Employee Turnover Trends research report, U.S. executives rank lost productivity as the #1 issue impacted by employee turnover. Lost productivity was followed by diminished service quality, decreased employee morale, lost organizational knowledge, and higher recruiting costs.

The survey gathers detailed turnover data from major U.S. based organizations representing every major industry. This year’s survey response was the largest yet, with over 600 participating organizations.

“It used to be that employee turnover was considered solely an HR problem, but now top executives are beginning to see the far-reaching impact of turnover and its implications,” explains Craig Taylor, VP of Client Services for TalentKeepers and senior research author of the 2008 Employee Turnover Trends report. “It starts a domino effect that will eventually touch all aspects of an organization. The key is to stop the chain reaction by implementing tactical retention strategies before the last domino falls.”

The report also shows an increase in several training, development, and employee engagement-focused retention strategies from last year. The number of companies conducting employee satisfaction surveys jumped 16% from last year, while companies offering training and development increased 5% and onboarding and orientation programs increased by 3%.

“Of course we assume these increases in progressive retention strategies are due to the increased awareness of turnover’s far-reaching organizational effects,” comments Taylor. “What’s discouraging, however, is that these strategies have missed their target. The method shown to be the most effective in reducing employee turnover is the implementation of front-line leader training in retention skills, of which there was no increase from last year. But it’s a tough sell to get senior-level management and executives to see the necessity of involving front-line leaders in the retention strategy. We have scores of research showing the powerful influence leaders have on employees’ decisions to stay or leave an organization; now we just have to get executives to invest in the concept.”

This and other turnover data is available in TalentKeepers’ 2008 Employee Turnover Trends Report. For more information or to obtain a copy of the report, please contact Mara Schwartz at mschwartz @ talentkeepers.com.

About TalentKeepers®
TalentKeepers®, Inc. is a global leader in employee retention research, award-winning solutions, and proven results in reducing unwanted turnover through their Web-based program RetentionWorks®. TalentKeepers’ unique solutions consistently achieve strong results by focusing on improving the retention skills of front line leaders and involving employees and executives in the effort to build a culture of retention and engagement that improves business results. TalentKeepers® was founded in 2000 by Fredric D. Frank along with co-founder Christopher Mulligan, together totaling over 40 years of combined human resources experience.

This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company
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Mara Schwartz
TalentKeepers
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