As the economy recovers, the job market is gearing to rebound as well. Companies are worried about losing critical employees and they should be—already some firms are trying to pick off the cream of the crop.
The Conference Board recently reported that 22% of workers want to switch jobs as soon as they can. Between recruiting, training a replacement and the loss of productivity, the loss of a key employee can cost up to three times a wage earners annual pay.
The first employees to leave will be the ones with important skills. Later on, that effect should trickle down, but not until the unemployment rate reaches about 7%--2012 at the earliest.
Still, companies can take preventative steps, the first of which is showing they care. By offering flexible hours and telecommuting options, employees will be happier in their positions and less likely to leave when the job market improves. In addition, taking an interest in career goals and emphasizing training opportunities is another good idea for companies.
Keeping promises is one of the most important things—if they can’t be kept an explanation is absolutely necessary. “Companies that don’t keep their promises will see even more dramatic losses,” says Ray Baumruk of Hewitt Associates.
Finally, save company cash for the most important people on the staff. Sometimes, the most important people are a line foreman rather than a vice president—productivity, experience and the availability of a replacement are things that should be considered when decided who gets a bonus.
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