Retaining Talent In Today’s Market

Employee retention has taken on a new significance amid one of the tightest labor markets in the past 50 years. The robust job market has given employees the confidence to seek new opportunities, while employers are wrestling with rising compensation and heated competition for new hires, both salaried and hourly.

An estimated 41 million people voluntarily quit their jobs last year. By 2020, that number will jump to 47 million, or roughly 1 in 3 workers. Each employee departure costs about one-third of that worker's annual earnings, including expenses such as recruiter fees, temporary replacement workers and lost productivity. To engender loyalty, companies are trying every tactic, from raising salaries to bolstering benefits to offering more training and education. 

Why People Quit
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According to the Work Institute, a Franklin, Tenn. based consulting firm, inadequate career development is the leading reason people leave their jobs, with 21 percent of those interviewed citing it as the driving factor. Those employees expressed frustration with the lack of growth, development opportunities and advancement in their jobs. The second largest reason (12 percent) for individuals leaving their job is due to inadequate work-life balance, travel and scheduling preferences. A close third ranking (11.3 percent) is due to manager behavior. Employees reported a lack of positive and productive relationships. The fourth largest reason employees quit is due to relocation, or a physical move out of proximity of the job (10.2 percent).  Ranking fifth at 9.6 percent, is compensation and benefits. Employees reported that they were promised total rewards and what they actually received created enough of a factor to leave their job. 

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