This Week's Herman Trend Alert

Leadership in Normal 2.0

  The Herman Trend Alert

June 14, 2006

Turnover Will Fatten Payrolls

Employers are experiencing increasing employee turnover, which causes a number of problems for them. One of those problems, not seen for a number of years, is beginning to resurface in many companies. The situation will become much worse before it gets better.

Payroll costs are increasing because employers are adding more people.

Regardless of the instability of their workforce, employers must still satisfy their customers. If positions are vacant—because people have left or companies have not been able to recruit qualified applicants, someone has to complete required tasks. Management has been forced into applying two strategies: First, current employees are asked to work more hours—pushing compensation costs and potentially wearing out the people who are forced to work the extra hours. Increasingly, workers are refusing to work too many hours, wanting to spend more time with their families. In some cases, they simply do not have additional time because of childcare or other responsibilities.

Second, employers must hire extra people to cover themselves. The extra people hired in high turnover organizations are viewed as a safety net. If employees leave, additional workers are brought in to perform the open jobs. Cautious employers will over-staff to assure that they have enough workers on the payroll to fill positions. The over-staffing situation means that some employees may be kept busy with training or tasks that really don’t have to be done.

Expect some companies to tell workers to stay at home on particular days. They will receive stand-by pay, but not actually show up for work. Employers with several locations in close proximity may have employees report for work in different facilities on different days, just to keep them busy and engaged with the employer.

Some employers will build closer relationships with staffing agencies or professional employer organizations (PEOs) to assure they will have people available when and where they are needed. Some employees may be placed on job rolls in arrangements similar to substitute teachers.

Extra people mean extra costs, which must be passed to buyers. But, at least there will be a greater chance of satisfying those buyers.

© Copyright 1998- by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Joyce Gioia, Strategic Business Futurist. 336-210-3548 or To sign up, visit The Herman Trend Alert is a trademark of The Herman Group, Inc."

Our author Joyce gets quoted in TIME Magazine and other national media on a regular basis. You can, too! Sign up for You will be found by the news media and in Google search: 1. Through your personal search-engine-optimized press room by 39 topics you choose; 2. By news releases pushed out 10 ways including Google News; 3. Be found in the 2020 printed Yearbook of Experts, Authorities & Spokespersons. Save 15% when you register by October 31st @

The Association of Professional Futurists proudly presents its annual online learning experiences on Full Spectrum Futures. Network with leading futurists from all over the world. And best of all, it's free to attend, though contributions are encouraged to help defray costs. For more information, visit here.

Excellent translation services from English, French, or German into Spanish. Especially well-versed in medicine/pharma and automobile industries. 5-year Bachelor Degree in Translation. Also editing and proofreading of all kinds of Spanish language documents. Flexible rates, depending on number of words, degree of difficulty/technicality, and turnaround. For an instant quote email Mariana Campora Lesti at or contact her on SKYPE at marianacampora.

To read this Herman Trend Alert on the web:

Herman Trend Alerts are produced by the Herman Group, strategic business futurists, Certified Management Consultants, authors, and professional speakers.

New subscribers are always welcome. There is no charge for this public service. The Herman Trend Alert is read by over 30,000 people in 90 countries, including other websites and printed periodicals. Click here to sign up for the Herman Trend Alert.

Do you enjoy receiving this weekly e-mail update? Contact us about our co-branded Herman Trend Alert service.

Subscribe or Unsubscribe to weekly Herman Trend Alert
View this week's Herman Trend Alert
Archived Weekly Herman Trend Alerts


[ Home · About · Products · Resources · Media ]


7112 Viridian Lane
Austin, TX 78739
Voice: 336-210-3548
Toll Free in US & Canada: 800-227-3566

  © The Herman Group. All rights reserved.

Web site design by WebEditor Design Services, Inc.