Keep Your Best: Retention Tips. Retention in an Improving Job Market

Recruiting the right employees and keeping the right employees matters, especially now. A recent SHRM press release revealed the answer to the question of what people plan to do when the job market rebounds. The majority of the Human Resource professionals & managers surveyed agreed that turnover will rise significantly once the job market improves. Both groups felt the job market will improve within the next year, according to the Job Recovery Survey. The survey's produced by SHRM & CareerJournal.com , the free, executive career site of The Wall Street Journal, two of my personal favorite sites. The survey results include responses from 451 HR pros and 300 managerial or executive employees. "We’re surprised by the percentage of exec employees who say they plan to jump ship once hiring rebounds," says Tony Lee, editor in chief/general manager of CareerJournal.com. "And with 56% of HR pros agreeing that turnover will rise, we’re interested to see what types of retention efforts those companies launch to keep their best employees on board." Employees cited the following three top reasons they would begin searching for a new job:

• 53% seek better compensation and benefits.
• 35% cited dissatisfaction with potential career development.
• 32% said they were ready for a new experience.

HR professionals were asked which programs or policies they use currently to help retain employees. The following three are the most common programs employers are using to retain employees:
• 62% provide tuition reimbursement.
• 60% offer competitive vacation and holiday benefits.
• 59% offer competitive salaries.

Most HR professionals surveyed (71%), in large organizations (those with over 500 employees), thought it would be extremely likely or somewhat likely to experience an increase in voluntary turnover once the job market improves. 41% from small orgs (1-99 employees) said it was extremely likely or somewhat likely that turnover would increase. 53% of respondents from medium organizations (between 100 & 499) thought the same.

A Majority of Employees Seek New Jobs; Job Search IS About the Money

75% of all employees are looking for new jobs, according to 2004 U.S. Job Recovery & Retention Survey released by SHRM & CareerJournal.com. 38% of the human resource professionals surveyed said they noticed an increase in turnover since the beginning of 2004. Employee turnover creates the need for aggressive employee retention programs because you don't want your best employees seeking new jobs. Employees say they are looking for new jobs for 3 reasons. “During a poor economy, employees tend to stay put. “s the economy improves, interest in jumping ship rises dramatically among employees who are ready to earn more money & find enhanced opps for advancement,” says Tony Lee, editor in chief, CareerJournal.com. “With so many employees already looking for jobs," said Susan R. Meisinger, SPHR, president & SHRM CEO, "the expertise of HR professionals is extremely important right now in retaining an org.'s top talent.” “HR pros understand it's far more expensive to recruit new employees than it is to retain them. Their efforts to create a positive work environment where employees are engaged, feel appreciated & see opportunities for career growth will help to decrease turnover rates.” In the survey, employees were also asked about their job search activity. The survey found that 35% of employees are actively job searching; 40% are passively job searching. Nearly half the employed survey respondents said they'd step up their job search efforts as the job market improves. HR professionals believe that as employees leave their organization for new opps, most of the resignations will come from non-management (69%) & middle-management (19%) jobs. According to the SHRM release, a quarter of the HR professionals surveyed said they're very concerned about voluntary resignations. HR pros participating in the survey believe the top three threats to employee retention are these:
• Better compensation elsewhere -- 25%,
• Job burnout -- 24% and
• Dissatisfaction with the potential for career development at the current organization -- 19%.