Will Your Employees Stay or Stray?
 
 

Whether you work in health care, financial services, manufacturing or hospitality— in a small organization or a Fortune 500 company—if your organization is successful, you know that employee retention and talent management are essential to sustaining leadership and growth in the marketplace. Current workplace studies indicate that the job market is improving and will continue to improve in the next year. Although that is good news for the economy, it could be bad news for you. Why? According to a survey conducted by Sibson and Company, 55 percent of employees are planning to quit or think they will quit when the job market regains strength. A second survey, WorkTrends 2004 conducted by Gantz Wiley Research, found indications that up to 41 percent of your workforce could already be looking to take their experience and a piece of your company culture to another employer—maybe even a direct competitor. A third study, by Accenture, indicates that 63 percent of midlevel managers are readying their resumés, waiting for the job market to strengthen.

Looking into the future, the U.S. Bureau of Labor Statistics projects an estimated shortage of 10 million people in the U.S. workforce by 2010. A recent Society of Human Resource Management (SHRM) survey of 451 human resources (HR) professionals and 300 managerial and executive employees found that over 56 percent expect employee turnover to rise significantly once the job market improves. Finally, according to the latest job recovery survey, when organizations with more than 500 employees were singled out, 71 percent stated that it would be extremely likely or somewhat likely to see an increase in voluntary turnover.

WARNING SIGNS

There are two ways employees leave your organization. Some leave physically, as in moving on to work for a competitor. This is a problem you can manage, since at least you know the employee is no longer on your team. The second type of employee is the one who should strike fear into the heart of every manager: the employee who quits mentally but stays with the organization. These five warning signs will help you determine if an employee’s level of engagement is less than optimum:

1. Evidence of a “Whatever” Attitude. The employee is not confrontational but is clearly not motivated.

2. Minimal Contribution. The employee shows up right on time, leaves right on time and does just enough to keep his or her job—and no more.

3. Absenteeism. The employee regularly uses up all sick time, vacation time or other paid time off. In severe cases, there may be a pattern of Monday or Friday absences.

4. Loss of Enthusiasm. The employee was once a motivated contributor but has suddenly withdrawn and now contributes little.

5. Little or No Interest in the Future. Whether you are discussing the company's vision for the future or your office Christmas party, the employee is clearly interested only in the “here and now.”