Data Watch

Retaining Employees Who Consider Leaving

A U.S. job market that employs the vast majority of the college-educated professionals out there (97.9% of them in November, to be exact) means retention is a major concern—and it should be. The U.S. Bureau of Labor Statistics estimates that the annual voluntary turnover rate will be close to 24% for the year 2007. Jobs are just too plentiful for employers to ignore the possibility of their best talent joining the competition. A new survey reveals the likely reasons driving employees to take their leave-taking cues.

The U.S. Bureau of Labor Statistics (BLS) estimate is reasonable in light of a recent post for Data Watch. Regardless of industry, turnover is costly, according to a news release from Bernard Hodes Group, author of the study. The estimated cost of a single vacancy for some jobs has been calculated to cost anywhere from $7,000 to $12,000 per day. According to Hodes 2007 Workplace Study – Playing for Keeps/Recruiting for Retention, a report compiling findings from the company's survey, workers seek employers who have a cohesive workplace culture and offer benefit packages that include options such as work/life balance and flexible scheduling options.

The top two reasons employees look for or are open to new employment

1. Limited career path (51%)
2. Compensation (benefits and pay) not in line with skill set (50%)

Of those surveyed, 21% report that at some point in their career they had returned to work where they had previously resigned. Three-fifths respond that they would reapply for the same job at the current employer. Hodes surveyed both full-time and part-time employees for the report. More than 50% of respondents to the survey are passive job seekers.