TalentKeepers, the global employee retention research and solutions firm, today released its annual study of employee turnover trends that included 391 U.S. based firms representing every major industry, from Aerospace and Pharmaceuticals to Telecommunications and Utilities. The purpose of the study was to capture and report key trends in employee turnover, the drivers that contribute to it, and the costs and consequences associated with its impact. A number of recommendations are included based on the results.
Retention of key talent is a major business priority for Americaís executives. Seventy three percent of the organizations in this study describe employee retention as ìvery importantî or ìextremely importantî as a critical business issue tied directly to their ability to achieve business results. If those who said itís ìimportantî are included, the number jumps to 90%.
Turnover rates across the country slowly continue to rise. Organizations report that turnover remained stubbornly high or worsened for 91% of the reporting companies. Turnover increased during 2005 for 46% and remained about the same for 45%. Only 9% of U.S. companies reported a decrease in turnover during the past year.
In one glimmer of optimism, as executives look ahead for 2006, 22% predict turnover will fall for their organization and only 33% see turnover increasing. Forty five percent still believe it will remain about the same. That view is tempered, however, because when asked about their industry as a whole organizations are much less optimistic. Only 5% believe turnover will decrease in 2006 for their respective industry and 44% predict it will be worse.
If the results of this study were boiled down to one point it would be this: Employee turnover is a business problem. No longer can the loss of talented employees be viewed as a ìpeopleî problem where responsibility and solutions reside solely with the Human Resources department. Yet, with leaders being held more accountable for retention, most appear ill equipped to tackle the problem. Companies report that the majority of their managers and supervisors - 89% - range from minimally skilled to only moderately skilled in retaining employees.
ìThe impact of employee turnover on business performance continues to grow, and the combination of slowing labor force growth and a widening skills gap worsens the situation,î said TalentKeepersí CEO Fredric Frank. ìWith retention rising as a strategic business issue, accountability for retention among senior executives also will grow. We believe this report includes vital information that will help inform leaders of labor trends they need to know.î
Copies of the report are available on request by contacting Craig Taylor at ctaylor@talentkeepers.com.
Contact:
Craig Taylor, 407-660-6041
TalentKeepers, Maitland, FL
ctaylor@talentkeepers.com
TalentKeepers released its annual study of employee turnover trends
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