This Week's Herman Trend Alert

Leadership in Normal 2.0
 

  Press Release
For Immediate Release
1/22/05
Contact: Roger Herman

Employee Turnover Threat Intensifies

Another survey has reported results warning of the rising threat of employee turnover. Gantz Wiley Research, a Minneapolis-based survey consulting firm, announced the results of its annual WorkTrends(TM) survey of over 10,000 U.S. employees on current workplace topics. Results show employee confidence in long-term organizational success at 65%, its highest level since the firm began collecting data over 20 years ago. In the most dramatic sign of increased employee confidence, nearly one half (47%) of respondents indicated a willingness to recommend company stock to family and friends, a growth of 10 percentage points from last year’s results.

This data is consistent with research results accumulated by The Herman Group, workforce futurists based in Greensboro, NC. Workers’ confidence is building as they hear about manufacturing picking up, the economy adding 157,000 new jobs in December, an increase in employment ads in newspapers and on job boards, and the appearance of numerous Help Wanted signs. The abundance of positive signs is contributing to the expectation that more job opportunities will be available.

When job seekers feel confidence, they become more bold and aggressive in their search for new positions. A recent survey conducted by the Society for Human Resource Management and CareerJournal.com reported that 48 percent of respondents are actively searching for new jobs; 33 percent are passively searching—receptive to opportunities that may be presented to them. Combining these numbers reveals that 81 percent of today’s employees are interested in changing jobs within the next 12 months.

Roger E. Herman, CEO of The Herman Group, has issued an official warning to employers that "American employers—and global employers directly affected by the US economy—are extremely vulnerable to unprecedented employee turnover. If steps are not taken quickly to defend against uncontrolled employee departures, employers could find themselves without sufficient talent to operate profitably."

Jack W. Wiley, Ph.D., President & CEO of Gantz Wiley Research, agrees. "From WorkTrends 2004 results, we predicted that employee turnover would be a large concern for businesses as soon as the economy improved. We are now seeing strong signs of economic revival, and experts have joined us in calling on employers to watch out for significant talent loss in the upcoming months. By focusing on the key drivers of talent retention-development opportunities, for example -- companies can preempt this coming crisis and hold onto their most valuable assets."

Herman, author of "Keeping Good People" and "Impending Crisis: Too Many Jobs, Too Few People," advises employers to step-up employee communication, assure that leaders are more visible, engage in deliberate re-recruiting, and strengthen supportive relationships between managers and their people. Training and education are high on employee wish lists, along with flexibility and life-work balance. "With WorkTrends 2005 indicating only 41% of employees are satisfied with their opportunities for career development, clearly much more attention needs to be focused on this area, says Wiley."

The Herman Group is a firm of consulting futurists concentrating on workforce and workplace trends and their implications. Emphasis is placed on employee selection and retention as critical strategies. Included in the firm are researchers, professional speakers, authors, and consultants. The Herman Group is based in Greensboro, NC, with affiliates in Sao Paulo, Melbourne, Hong Kong, and Port Louis, Mauritius. Contact Joyce Gioia-Herman at 336-210-3548 or e-mail: joyce@hermangroup.com.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            


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