March 2007: Business Tools
HUMAN RESOURCES
Why are so many employees looking to leave?
There are a lot of scary things in the world for employers.
Executives can be worried about market share, price points,
customer loyalty, competition and cash. They can see
not-so-hidden hurdles around every corner and under each
invoice that must be paid. Business gurus alert us daily about
threats and challenges to virtually every industry.
So when a real danger exists, it is possible for it to get
lost in all the noise. Here is what ought to be of major
concern to every employer: According to a recent survey
conducted by the highly credible Society for Human Resource
Management (SHRM) and the Wall Street Journal’s
CareerJournal.com, “Approximately three-fourths of
employed respondents are either actively or passively job
searching.”
The specific numbers were 41% actively looking for other
employment and 35% posting resumes and browsing classifieds
(passive job searching). Only 24% of those responding said that
they were not job searching at all. Another scary number is
that 44% of the employed respondents said that they were likely
to increase or begin efforts to find other employment during
this year. So it is possible that the 24% reporting no job
search activity may be anticipating beginning in the near
future.
It may be that executives are already apprehensive about this
trend. The SHRM survey also found that three-fourths of human
resources directors are concerned about the increasing number
of voluntary resignations, while 61% of executives indicated a
similar concern.
And lest you think that this is only one survey likely to
apply to your employees, consider what another survey
just completed by Compensation Resources found: “Turnover
among managers has jumped from 4% in 2004 to 8.8% in 2006; from
8% to 16% for salespeople; and from 7.5% to 17.5% for skilled
manufacturing employees.”
In order to stem the departure of professionals and mid-level
managers (many of the people who indicated that they were
looking for other employment), organizations must understand
what is prompting them to exit. The results from Gallup’s
work over the past several years suggest approximately 70% of
all voluntary employee departures are because of the direct
supervisor. Lack of recognition, unclear expectations, little
or no encouragement, no investment in development, and abrupt
and harsh treatment are cited as routine. Supervisors who
connect, communicate, care, and develop workers are far less
likely to have a high level of departing employees. Just look
at this year’s 100 Best Companies to Work for in Oregon
to see how much this means.
Another cause of higher turnover is because many employees
have felt they were being taken for granted. During the last
few years when the economy was struggling, employees understood
why they weren’t receiving raises. But now that there has
been a turnaround, business is better, and money is flowing
more easily, employees wonder why their loyalty isn’t
being rewarded with larger increases or more
responsibility.
Comments on satisfaction surveys reveal that they believe that
the employer isn’t paying sufficient attention to
employee advancement, training, sharing organizational
information, or soliciting ideas and suggestions from employees
who know their jobs best.
Employers don’t have to offer everything that Google
does (Fortune
magazine’s Best Company to Work For 2007), where the
perks include on-site washers and dryers, a $5,000 subsidy if
the employee buys a hybrid car, and free on-site oil changes,
just to name a few. But they do need to establish a positive
relationship with their employees if they want talented people
to stay.
Let’s face it, if the work relationship isn’t what
employees want or can have with another company, then
it’s the best employees who will leave, not those who
cannot interest another organization in hiring them. The best
talent will say goodbye and take their skills and knowledge
elsewhere. Customer relationships, valuable experience, and an
understanding of how things work at the organization all depart
with them. That’s sad, because it really isn’t that
hard to create places where employees know they are valued.
Business success is the result of good products and services
and great employees. Those who build great places to work will
enjoy the benefits of innovating, energized and engaged
employees. Those who believe that there is another employee
where they found the last one are likely to be surprised by the
turnstile at their door.
— Judy Clark, SPHR,
CEO, HR Answers
jclark@hranswers.com
