, a quarterly report on workplace issues and trends prepared by consulting firm Drake Beam Morin Inc., states that retaining employees isn’t any easier even in today’s economic downturn.
The study solicited responses from 400 companies in Canada and the United States. It found the following:
•average annual employee turnover rate: 20 per cent;
•percentage of human resource professionals polled who said retention is a critical issue: 81 per cent;
•percentage of respondents who planned to remain with their current employer for no longer than three years: 48 per cent.
But Drake Beam Morin advises that its research shows that, for an investment of less than one per cent of the total cost of annual employee turnover, employers can improve retention, reduce unwanted departures and enhance profitability. It suggests the following three-step process:
Understand the problem.
Study the demographics and conduct exit interviews to find out why employees have decided to leave the organization.
Create an integrated solution.
Develop a retention strategy that increases an employee’s connection to the organization. The solution should respond to the concerns raised by departing employees.
Monitor the impact of solutions.
Stay close to employee issues, adjust interventions accordingly, project their impact and modify approaches as needed.