Human Resources: TalentKeepers released its annual study of employee turnover trends

ORLANDO, Florida – April 3, 2007. TalentKeepers (www.talentkeepers.com), the global employee retention firm, today released its annual study of employee turnover trends that included 547 major U.S. based firms representing every major industry. For the first time, the forecast by employers turned decidedly gloomy when asked to forecast the trend for this year. Only 3% predict turnover will decrease for their industry and nearly half - 45% - forecast an increase in turnover. Another 52% see the problem remaining the same for 2007.

Early tenure turnover also has been trending up, with many workers leaving jobs after less than a year. The study identified fairly definable periods in the employee lifecycle where the risk of voluntary turnover is highest. While few workers quit during initial training, which is only 1% of all turnover, the number quickly jumps to 15% during the first 90 days. Another 25% leave around 1 year into their jobs. Added together, 59% of all attrition is occurring in the first year of employment and begins declining only after the 1-2 year period. These days, no one is thinking about keeping workers forever. The new thinking is focused on extending the average length of stay.

Turnover’s impact on organizations continues to rise as well. When asked to report the areas most impacted by the loss of employees executives cited lost productivity and service quality at the top of the list. We have continued to see these and related business issues rise to displace the typical direct “employee replacement” cost normally associated with the cost of turnover. Furthermore, based on this research, we predict that organizational productivity will outweigh every other negative impact when a valued employee quits.

“Employee turnover is a business problem. No longer can the loss of talented employees be viewed as a “people” problem where responsibility and solutions reside with the Human Resources department,” said Craig Taylor, who led the study for TalentKeepers. Taylor goes on to add, “Retention strategies can best be successful through an organization-wide commitment and accountability for results. If a business problem was costing millions of dollars a year, wouldn’t you hold leaders throughout the organization accountable for fixing it?”

About TalentKeepers

TalentKeepers®, with clients on four continents, is a global leader in employee retention research, thought leadership, and retention products that include the world’s #1 Web-based retention solution, RetentionWorks®. TalentKeepers’ unique solutions consistently achieve strong results by focusing on improving the retention skills of leaders and involving employees and executives in the effort to build a climate and culture of retention and engagement that improves business results. Contact: 407.660.6041 or www.TalentKeepers.com.

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