Q&A talks about challenges businesses face in retaining top talent with Ed Poff, the managing partner of OI Partners Inc., a global talent management firm with offices in Avon and Danbury.
Q: According to research OI Partners did, the number of workers quitting their jobs is up 8 percent over last year — and up 19 percent from two years ago. Why is that?
A: The increase in the number of people voluntarily quitting their jobs is directly related to the increase in the number of jobs that have been created in our economy. The number of jobs created so far this year, from January through June, is 9 percent higher than during the first six months of 2012, according to the U.S. Department of Labor Statistics. In addition, the number of jobs created so far this year is 10.3 percent higher than during the first six months of 2011. With job increases of 9 percent and 10.3 percent respectively, there have been more opportunities for workers to find other employment.
Q: Are companies going to replace these employees? Is it your sense that new workers will be hired? Especially in light of some studies showing small employers aren’t adding new employees.
A: It depends on a variety of factors, including the employer’s industry and how well the employer was performing economically. Some employees leave for better opportunities while others leave seeking more stable employment. Industries such as health care and information technology have been hiring more workers while manufacturing companies have been cutting back. It also depends on whether an employee who leaves was considered “core” to the company’s operations and will need to be replaced. In some cases, employers are opting to replace full-time workers who leave with consultants, freelancers and part-time workers. A full-time employee who leaves may be creating opportunities for two contract workers. That is why it is always important to consider contract and freelance work when job searching.
Q: As the results point out, companies can no longer have the attitude, “Be happy you have a job” with their employees. What can be done to retain their talent?
A: One of the biggest ways to retain talented employees is to show them that they are valued and their skills are appreciated. Some companies are doing this through increases in compensation and benefits. Roughly 40 percent of employers in our survey are using better compensation and benefits to retain management employees, and 30 percent are increasing wages for front-line workers, or those with whom customers initially come into contact. Another way is to provide developmental coaching to management and future management employees to convey that companies are interested in their career progression and want to invest in helping them become leaders. More than half of the companies in our survey are giving coaching to executives, middle managers and high-potential employees as a retention method.
Q: Your survey shows about three-quarters of surveyed companies are concerned about losing more high-potential employees and almost two-thirds are worried about middle managers leaving. How can companies be proactive in protecting their resources?
A: Middle managers and high-potential employees are especially interested in what their futures are with their employers. In addition to coaching them in their career development, more employers are mutually developing a “career path” with each worker and continually monitoring their progress. Employers need to make both a near-term and long-term commitment to their worker’s career development in order to retain them.
Q: The survey also addresses that front-line employees dealing with customers are leaving in higher numbers. Is this a reflection, possibly, of poor training and low job satisfaction?
A: Half of employers in our survey have had higher turnover of front-line workers so far this year than in 2012. Front-line employees are the most receptive to leaving for higher pay and better opportunities. A number of front-line workers are paid minimum wage, or slightly above that, so an hourly wage increase elsewhere is enticing to them. But training and orientation of front-line workers is also important. Roughly half of the employers in the survey have improved their training and orientation programs. However, the top methods employers are using to retain front-line workers are selecting them more carefully before the start of their employment, and asking them why they are leaving at the end to determine if their reasons for leaving can be addressed either for them or for remaining employees.
Q: The results show employers are more often using role expectations assessments before hiring, promoting or succession planning. Explain why these are effective.
A: Role expectations assessments help determine whether individuals have the competencies and behaviors required to succeed after being hired or promoted. Employees are assessed to evaluate how well they fit profiles employers have developed to ensure people have the skills and attitudes considered to be necessary to succeed in certain jobs and can help companies achieve their objectives.
