Upside to the Downturn: Is Retention Easier?

The HR Capitalist, Kris Dunn, recently posted a blog questioning if retention is easier in a down economy. A key conclusion of his was that your best performers will always have options. He cited a Leadership IQ study that reported 47% of high performers surveyed are actively seeking another job but only 18% of low performers and 25% of middle performers are actively looking.

Towers Perrin reported the same in their most recent Global Workforce Study:
"Engagement has an impact on retention. Even among the engaged, almost 40% are 'passive job-seekers.' Even worse, fully half of the disengaged have no plans to leave. This means employers face a real risk of losing the people they'd most like to keep - while retaining those who are not contributing as they should."

So what does this mean for managers and HR executives? If you want to keep your A players, you better give them reason to stay. For these top performers, compensation and benefits is only part of the picture. They also need a challenge, opportunity, and the knowledge they are valued for their efforts. Use a strategic recognition program to not only recognize your A players as you should be, but to also track and measure your recognition efforts. When you then tie these results to your turnover statistics, you can begin to evaluate based on clear metrics the synchronistic effects of recognition on turnover.

(Image from Towers Perrin 2007-2008 Global Workforce Study)

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