With the background of an improving labour market, half of companies have had a higher employee turnover than last year. Three quarters of them also expect to see even more departures. This was revealed by a survey conducted by OI Partners-Feldman Daxon Partners among 153 North American companies.
To be prepared for the waves of announced departures, 58% of companies have already recruited or plan to do so during the year. Only 8% foresee a reduction in their workforce and 34% don’t anticipate any change.
Professionals more or less tempted to leave
Employers have noted a higher staff turnover this year at all levels of companies’ organizations, with 51% for front line workers, 34% for high potential staff, 29% for executives and 27% for middle managers.
The better health of the labour market is generating serious concerns regarding retention of high potential staff for 78% of companies, and also for other categories of staff, such as middle managers (for 63% of employers), front line workers (51%) and executives (43%).
Customer service employees are the most difficult manpower to retain, for 28% of respondents. These are followed by workers in production and operations (26%), sales and marketing (24%), information services (23%), accounting and finance (21%), research and development (10%) and human resources services (7%). Companies have also not found any problem in retaining their legal employees on their staff.
Methods for retention developed by companies
The companies interviewed have developed various methods to retain their employees at the different levels of the organization.
For high potential staff, the most commonly used methods are developing supervisory programs (55% of respondents), better wages and benefits (47%), flexible hours (45%), mentoring programs (40%) and refunding tuition fees (37%).
For middle managers, supervisory programs (51%), flexible hours (49%), better wages and benefits (41%) and tuition fee refunds (37%) are most commonly chosen by employers.
For executives, these are more easily offered supervisory programs (53%), better pay and benefits (51%), stock-options (44%), profit sharing (29%) and retention bonuses (27%).
Finally, front line employees are subject to more careful recruitment (62%), termination interviews (55%), better training (55%) and more closely monitored guidance (47%). Companies also offer them tuition reimbursement (37%), flexible hours (31%), trial periods before hiring (30%) and better wages and benefits (28%).