" HEAVY TURNOVER EXPECTED! "

SUPPLY AND DEMAND SHIFT … HEAVY TURNOVER EXPECTED

According to the latest Job Recovery Survey released by the Society for Human Resource Management (SHRM) and CareerJournal.com, HR professionals and employees agree that turnover will rise significantly once the job market improves….and they anticipate this improvement in the next year. The survey, which polled 451 HR professionals and 300 managerial/executive employees, found that 83% of employees said it was extremely likely, or somewhat likely, that they would actively seek new employment once the job market and economy improves. Furthermore, 56% of HR professionals agreed that voluntary turnover would rise due to the improving economy.

In a similar survey conducted by Spherion Corporation, 52% of respondents indicated a desire to change jobs at the earliest opportunity. As a result, organizations could be saddled with turnover costs exceeding $600 billion in the next two years.

What does this mean to you as an executive? While we doubt that 83% of executives will actually change jobs in the next year or two, we do expect that turnover will increase significantly. The real winners will be those companies with the ability to retain their top-notch executives while, at the same time, acquiring additional “A” players from the available talent pool seeking a change.

You should begin working NOW with your organization to develop succession, retention and recruiting strategies for your key employees and leadership team. An essential feature of this plan should be to develop a long term partnership with a “classic” retained executive search firm.