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Industry News

 

Research Finds Poor Talent Management Significantly Increases Employee Turnover

Friday April 25, 2008

 

Philadelphia — April 25
A significant number of employees are leaving their employers due to ineffective leadership and a lack of opportunities or challenges within the organization, according to an online survey conducted by Right Management, a provider of integrated human capital consulting services and solutions across the employment life cycle.

Thirty percent of 1,308 respondents said they left their jobs to seek new challenges or opportunities that were lacking with their previous employers.

In addition, 25 percent of respondents reported leaving employers because of ineffective leadership, 22 percent cited poor relationships with their managers and 21 percent said their contributions were not valued.

“We’ve identified four critical elements to retaining top talent: having a voice in the business, receiving regular and substantive feedback, effective leadership and career development opportunities,” said Douglas J. Matthews, president and chief operating officer of Right Management.

“Turnover is costly and disruptive. Our research found that it costs nearly three times an employee’s salary to replace someone, which includes recruitment, training, severance, lost productivity and lost opportunities. The most successful organizations look for innovative ways to keep and engage their talent,” said Matthews.

“Poor management results in lower morale, decreased productivity and employees who are disengaged from their jobs,” said Matthews. Only 43 percent of U.S. employees are fully engaged in their jobs, meaning that a majority — 57 percent — are not, according to Right Management’s research. “There is a direct correlation between the level of employee engagement and important business benchmarks such as higher customer retention, lower employee turnover and increased sales and operating results,” said Matthews. Organizations with high levels of engaged employees are also better able to retain customers and generate higher sales and operating results.”

“Coaching helps leaders to more effectively communicate and engage employees in the organization’s mission and values and contributes to improvements in productivity, quality, customer satisfaction and shareholder value. Effective leaders also recognize the value of each individual’s contributions, fostering a deeper level of commitment from employees,” said Matthews.

Employees want opportunities to make greater contributions by taking on more challenging roles or advancing in their careers. “Offering innovative ways for employees to learn new skills and broaden their roles helps to promote a culture of collaboration and creativity. Employees are more likely to remain engaged in their jobs and committed to organizations that make investments in them and in their career development,” Matthews said.

For more info: http://www.right.com