Scary Stats…But Not For Us



Scary Stats…

The Turnover Tidal Wave

“Hallelujah! The War for Talent II is just around the corner. But alas, the day of fighting a war for talent with conventional weapons has also passed. It’s time for corporate leadership to question whether they are using ‘smart’ weapons, tools, and strategies necessary to fight a 21st-century war for talent.”

Dr. John Sullivan, Professor & Head of HR program, San Francisco State University

Electronic Recruiting Exchange, November 17, 2003

“We’re a few good breaths away from being back at a lower unemployment rate. Companies can limit their exposure by saying ‘Thank You’ and recognizing the good work people have done for them. But I think generally this is where companies have a pretty big miss in this area.”

Jeff Taylor, Monster

“The more highly engaged employees are, the more likely they are to put customers at the heart of what they do and how they think about their jobs, and the less likely they are to leave their company.”

Towers Perrin Talent Study, April 2003

Loyalty, Satisfaction & Engagement – A thing of the past!

← More than eight in 10 workers plan to look for a new job when the economy heats up

CNN/Money, November 12, 2003 – I Quit! (SHRM survey)

← Two-thirds of employees (64%) are likely to begin or increase intensity of their job search once the recovery is underway; additional 19% said they were somewhat likely to search.

SHRM & Wall Street Journal (Careerbuilder) Survey, July 2003 (2,000 workers)

← Top reasons cited for seeking another job:

– 53% for better compensation/benefits package

– 35% dissatisfaction with potential career development

– 32% ready for new experience

← Less than half of all Americans say they are satisfied with their jobs

Conference Board, September 18, 2003 – Survey of 5,000 households

← Highest level of discontent since 1995

← Only one in five workers are satisfied with company’s promotions and bonus plans; only one in three are content with wages.

← Gallup Poll of 1.5 million employees link higher scores to lower turnover, higher sales growth, better productivity, and better customer loyalty.

← Employees: Loyal and productive: 20%

Not engaged (just putting in time): 55%

Actively disengaged (unhappy and spreading discontent): 19%

← Managers: Engaged: 34%

Not engaged: 52%

Actively disengaged: 16%

← “The more highly engaged employees are, the more likely they are to put customers at the heart of what they do and how they think about their jobs, and the less likely they are to leave their company.”

Towers Perrin Talent Study, April 2003 (35,000 employees surveyed) indicate:

← 19% of today’s workforce is disengaged; 64% are “moderately” engaged; and only 17% are highly engaged

← 53% agreed their company provides challenge in their work.

– There are certain things employers can do to help promote a more stimulating and challenging environment including:

← Encouraging people to take initiative

← Being open to change

← Tolerating uncertainty

← Coaching and developing people’s skills

← Holding people accountable for performance

← The more highly engaged employees are, the more likely they are to put customers at the heart of what they do and how they think about their jobs, and the less likely they are to leave their company.

← Only 30% of all US employees are truly loyal; 34% are considered high risk (neither committed nor planning to stay) and 31% of employees are trapped (not committed but still plan to stay over next two years.

The Walker Loyalty Report, June 2003 (3,350 people surveyed)

← Employees see their relationships and development within the company – not compensation – as key drivers for retention, commitment and loyalty.

← This study identifies other key drivers of employee loyalty and demonstrates links between employee loyalty and customer satisfaction and loyalty. Other key drivers include:

– Care and concern for employees

– Fairness at work

– Feelings of accomplishment

– Day-to-day satisfaction

– Appreciation of ideas

← Industries with least Truly Loyal employees are Technology (20%) and Communications (24%)

← Industries with most High Risk employees are Technology (43%) and Manufacturing (42%)

← Industries with most Trapped employees are Government (38%), Health Services (38%) and Insurance (36%)

← Loyalty is a thing of the past. It appears that every man, woman, and child is ready to quit their current job at the first opportunity.

Electronic Recruiting Exchange, November 17, 2003 – Holy Toledo, the Pre-Boom Has Begun!

← As few as 20% and as many as 50% of currently employed professionals will begin surfing the net for jobs by mid-2004.

← Most companies currently have taken no action to prepare for this onslaught.

← Those firms that are anticipating having to hire only 5% to 10% more employees to meet shrinking inventories and growth demands are in for a shock. They may actually need closer to 20%.

← 48% of managers, across all business functions, say they are looking for new jobs or plan to do so once the economy picks up.

InformationWeek Magazine, September 8, 2003 - Good as Gone

(Accenture Survey )

← Losing management talent could be costly. Research by Towers Perrin suggests IT workers value leadership and management more than employee in other business disciplines. What will happen to employee satisfaction when these managers start leaving?

← 64% of current job seekers (11 million workers) nationwide plan to intensive search when economy improves. 16% of those not currently looking (4.4 million professionals) say they’ll begin search when economy improves. 40% of middle managers are looking for a job (17 million unhappy managers).

Accenture Survey, November 12, 2003 (509 people surveyed)

← Some real eye-opening findings from a real-time poll that Forbes is taking shows of the 4,500 responses received to-date, the majority (24%) answer to “Are you happy at work?” was “No, I’m overworked, under challenged, and my boss doesn’t care”.

Forbes

← The Washington Post, Amy Joyce (2003) reported:

← Employees are staying at their jobs longer, not necessarily because they want to, but because they feel they have to!.

← The desire to job hop is still there, but the economy has forced employees to tamp down those expectations.

← Convincing an employee to come and stay isn’t such a problem; keeping them motivated can be.

← People are more concerned about keeping a job than about what they’re doing. Their heart’s not in it. You’re not getting that extra kick from people who love what they’re doing.

← The best thing we can do for people is help them to see what options are there for them and let them know it’s okay to talk about it.

← Employees accustomed to job hopping are in danger of falling into a boredom trap – or of simply feeling trapped. That has been a painful change even for those who might not want another job. Those feelings can translate into low morale and low productivity.

The Economy is Improving

← Job market improvement expected within the year (42% HR and 36% employees; 28% employees expect improvement within the next six months)

SHRM & Wall Street Journal (Careerbuilder) Survey, July 2003 (2,000 workers)

← Capital spending has begun to loosen in many major firms, a precursor that hiring will begin within six to eight months.

Electronic Recruiting Exchange, November 17, 2003 – Holy Toledo, the Pre-Boom Has Begun!

Talent Shortage

← The U.S. Bureau of Labor Statistics projects an estimated 10 million shortage in the U.S. workforce by 2010.

← 58 million job openings projected by 2010 ()

← 25% increase in managerial positions over next 13 years, expect 15% decline in 35-55 year olds (principal source) – US Census Bureau

← 43% of 141 million US civilian labor force will be eligible to retire in the next decade (NY Times, August 22, 2001 based on 11/99 Department of Labor Statistics)

← 61 countries experiencing lower than replacement-level fertility (US Department of Census)

Easier Job Search, New Opportunities,

← The number of current employees who will find the time to look for an outside opportunity on the Internet will be triple what it was at the beginning of the last boom (because of the easy access to job opportunities and the ease-of-use of these tools),

Electronic Recruiting Exchange, November 17, 2003 – Holy Toledo, the Pre-Boom Has Begun!

← 26% of 2002 workforce were temporary or contract workers, with the number projected to grow to a startling 41% by 2010.

← 1.1 million more people are working for themselves since February of last year.

CNNMoney, November 6, 2003

The Cost of Turnover

← CNN/Money, November 12, 2003

← $100,000 … tab to replace a typical white-collar middle manager

← 3,000 pairs of $35 khakis … the cost to a national clothing chain to replace a salesperson who quits

← Disengaged workforce costs the UK $79 billion a year in productivity and lost working days.

, November 21, 2003

← 4 out of 5 are not engaged

← 19% are loyal

← 20% are actively engaged (those engaged are up to 5% more productive)

← ComPsych surveyed employees of more than 700 client companies, September-October, 2003

← 63% of employees report high level of stress with feelings of fatigue and out of control (15% higher than first half of 2003)

← 79% of respondents report 15 minutes to 1 hour per day loss in productivity due to stress (4-16% loss in productivity due to stress by almost 80% of America’s workforce)

← 23% miss more than 6 workdays a year due to stress.

← 42% cite workload as primary cause of stress; 16% cite juggling work and personal life; and 13% cite lack of job security.

← GTE metrics show that every 1% improvement in employee engagement boosts customer satisfaction by 0.5%

Harvard Business School, September 1, 2003 – The New ROI: Return on Individual

The Time to Act is Now!

← Over 75% of firms have no separate retention department, and most HR retention systems are either rusty or have been dismantled altogether.

← Most firms have by now long forgotten any of the lessons they learned about retention during the 1990s.

← Many managers have grown arrogant because the last few years of high unemployment guaranteed that most employees would have to take whatever they dished out.

← Act now, before the job market opens up – because employees see acts of kindness (retention efforts) more sincere when managers are not being forced to act by a raging job market.

← If talent managers do not take action soon, that swooshing sound you hear will be the sound of 25% of your employees walking out the door.

The Turnover Tidal Wave is Coming: Are You Ready? September 22, 2003, Dr. John Sullivan

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