Despite High Unemployment Rates, Retention is Still Important
Posted on March 12, 2013
Many employers are wondering whether retention still matters when unemployment rates are high. They may be inclined to think their employees don’t have any other options, so they must stay with their current employer no matter what. But retaining good employees is more important now than ever. Brian Kropp of the Corporate Executive Board highlighted four key reasons why retention matters:
1. Talented employees have more opportunities
College-educated, highly skilled employees have many job opportunities--the unemployment rate for this group is less than 4 percent. For workers without a college degree, that rate is nearly double. When company leaders only look at the average, they may miss this important distinction.
2. High-potential employees are looking to move
According to research from the Corporate Executive Board, 25% of high-potential employees are thinking about leaving their current employer, compared to 10% for other employees. This is because high-potential employees have seen increasing workloads in the last several years without a corresponding increase in compensation--read more about this trend.
3. As unemployment rates improve, employees will be actively
While still not back to pre-recession lows, unemployment rates have come down since the worst of the recession. As the labor market improves, employees will become more proactive about seeking job opportunities, and other organizations will recruit them more aggressively. Another key motivator for your employees to change jobs is how you treat them: Corporate Executive Board research shows that 50% of an employee’s decision to leave their employer is based on how they have been treated in the past.
4. Negative word of mouth from departing employees could hurt you
Only one in four departing employees would recommend their previous employer as a good place to work, according to Corporate Executive Board surveys. Given that your former employees are likely to be the most trusted information source for potential candidates, this could spell trouble for your employment brand.
Don’t let a down economy fool you; retaining top talent is more important than ever. Find out how Paycor’s solutions can help you find, develop, manage and engage the right people: get in touch with us today.
_Sources: Workforce, The Corporate Executive Board