Talent Retention Jumps in Urgency as a Key Business Strategy

Orlando, FL - TalentKeepers, the global employee retention research and solutions firm, reports in a new study of 251 organizations that employee turnover has begun to worsen in spite of the sluggish economy with 86% of executives reporting that turnover has remained stubbornly bad or increased in their organizations. The results will be included in the release of its Employee Turnover Trends 2004 report on October 25th.

More firms are now tracking turnover and retention as a key business metric. Executives recognize that itís difficult to manage what you donít track, and 87% of the companies in the study track turnover at least at the organization or department level. However, 13% of firms reported they do not track employee turnover in any systematic way. Back on the positive side and reinforcing the growing recognition that front-line leaders significantly impact the stay or leave decision of an employee, 54% of organizations now track turnover by individual leaders.

Whatís driving this renewed sense of urgency in talent retention? The assumptions that guide many organizationsí talent management practices are based on the availability of an ever-expanding and perpetually better-educated talent pool. But a wave of studies now show those assumptions are about to change in a big way fueled by the retirement of aging baby boomers, lower birth rates, tighter immigration rules and an increase in the skills demanded by todayís jobs. All of this combined is moving talent retention to the front burner.

ìAs the impact of employee turnover grows and retention rises as a strategic business issue for most organizations, it also points to the trend of greater accountability for retention on the part of senior executives,î says TalentKeepersí Chief Client Services Officer Richard Finnegan. ìWe see this trend continuing with accountability for keeping productive employees being pushed all the way out to front-line supervisors,î he adds.

Advanced copies of the report are available on request by contacting Craig Taylor ctaylor@talentkeepers.com