Despite Weak Economy, Turnover Holds Steady April 11, 2008 Edited by Jeremy Cohen
Any company that assumes the slowing economy is going to keep its workers from jumping ship is in for a pretty harsh reality check. According to a new Salary.com survey, despite fears of recession, more than half of the 7,000 employees contacted are likely to intensify their job search in the next three months.
That said, this percentage is slowly decreasing: In 2006 nearly 65% of employees surveyed were actively looking and in 2007 just over 60% of employees said they planned to look for a new job in the next three months.
"Job satisfaction varies from person to person and is based on many different factors," says Bill Coleman, chief compensation officer of Salary.com. "In the wake of a possible recession, employees may be looking for a new job, but won't make a move unless they receive a good offer from a stable employer. It's important to keep in mind that compensation may be a key factor as to why employees would consider leaving a job, but it's not the top reason they stay in their current job."
Inadequate compensation was the number one reason employees gave for leaving a job (27%), followed by lack of career advancement (19%) insufficient recognition (17%), boredom (11%) and no professional development (11%). Half of the employers surveyed said a job offer with an 8% to 15% salary increase from a competitor would be enough to lure away current employees. Yet on average, employers are willing to give an average raise of just 7% to entice employees to stay.
Not surprisingly, employers are aware of the high costs associated with replacing workers due to turnover. Employers across all industries estimate the cost to replace a typical employee due to turnover to average approximately $21,000. Some industries estimate recruitment costs to be well above that figure.
Representatives from the biotech industry estimate replacement costs to run more than $46,000, followed by aerospace and defense at over $30,000 and energy and utilities at slightly over $28,000.
Sales & Marketing Management Magazine
This article is brought to you by Sales & Marketing Management, the leading authority for executives in the sales and marketing field.
RSS
