One in three employers expect employee turnover to continue to increase in 2013, according to a survey by AMA Enterprise, a division of American Management Association. Five percent think this turnover will increase significantly, and 28 percent say somewhat. Fifty eight percent expect no change; 9 percent remain unsure.
Employee turnover can be described as, “how long employees tend to stay” or “the rate of traffic through the revolving door”. This is usually measured for industries as a whole compared to its individual companies. High turnover rates relative to competitors within the same industry means that employees of the company have shorter average tenure rate than those of other companies within the same industry and marketplace.
Employee Turnover a Serious Challenge?
Employers all over the world are facing a serious challenge—a critical shortage of qualified workers. A recent survey by AMA Enterprise, a division of American Management Association, reports that more than two-thirds of employers in the United States are concerned about gaps in their organizations’ management ranks.
According to a survey by AMA Enterprise… Those who are anticipating higher employee turnover, were asked “If you expect higher turnover in the year ahead, how well prepared do you think your organization is to deal with it?” Here are the results: Our organization is not at all prepared—22%; Our organization is somewhat prepared—59&; Our organization is well prepared to deal with any rise in employee turnover—19%.
“The good news is that there’s growing confidence about the economy and the job market,” Edwards said. “The bad news is that there’s also growing disgruntlement among employees, which is likely to result in increased turnover.” Sandi Edwards, AMA Enterprise Senior Vice President. “Based on our findings, there’s a widespread sense that more workers will be on the move this year, and this will be due largely to a revived job market, which nearly two out of three of our respondents feel confident about.” Edwards advises employers to tune in to employee sentiment and have one-on-one career discussions, particularly with high potential and high value employees. “Let them know how they contribute to the success of the firm and what role they play both today and in the future.”
For more management insights and strategies, sign up for our free management newsletter, Moving Ahead.
As part of your leadership development toolbox, rotational assignments can go a long way in strengthening your frontline leadership muscle and succession planning strategies, says HR expert and author Paul Falcone.