SI Review: September 2010

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Short Takes, SI Review September 2010

Nearly One-Third of Employers Are Concerned About Top Talent Leaving

With the economy beginning to improve, 32% of employers are concerned about losing their high-performing workers, and one-third of workers say it is likely they will start looking for a new job, a CareerBuilder.com survey reveals.

The survey found 32% of workers are dissatisfied with their pay, up from 29% a year ago. Also, 22% of workers are dissatisfied or very dissatisfied with their work/life balance, up from 20% last year. And 27% of workers are dissatisfied with the career advancement opportunities provided by their current employers, up from 24% last year.

In addition to competitive pay and benefits, workers who have their sights set on making a career move shared what they will be looking for in a new employer:
  • good career advancement opportunities (60%)
  • good work culture (57%)
  • financial stability and growth potential (52%)
  • training and learning opportunities (47%)
  • a less stressful work environment (45%)
  • flexible work arrangements (43%)
  • a sense of ownership in their position, that they can make a difference (42%)
  • camaraderie, more family-like work environment (34%)

Worries Over Managers/Execs Saying Adieu -- Cost to Replace Them Is High
Sixty-four percent of companies are worried they may lose managers, and 48% are concerned about losing executives as the job market improves, a survey by OI Partners reveals.

Replacing a manager or an executive who leaves for another job, or one who turns out to be a bad hire or a promotion, can be costly. It costs an average of two and a half times an executive's salary, and two times a manager's compensation, to replace them, according to an OI survey of 262 companies. The costs are for the recruitment and training of the worker who leaves and the replacement, lost business, and severance pay and benefits.

To bolster their efforts to retain managers and executives, four out of 10 companies are offering better salaries and benefits, and more than half are utilizing training, coaching and other developmental programs, the survey found.

Companies need to pay close attention when hiring and promoting managers and executives. Hiring and promoting the wrong executives results in lower morale, 81% of companies surveyed said. Other negative impacts cited for having the wrong executives in place include: lower worker productivity (74%), lost business (53%) and higher employee turnover (48%). The biggest negative consequences from hiring or promoting the wrong managers are: lower employee morale (84%), decreased worker productivity (82%) and higher employee turnover (59%).
Professional Hiring on the Rise
Fifty-two percent of employers and recruiters plan to hire more professionals in the second half of 2010 than in the first, and a quarterly report shows salaries for new hires are rising, according to a survey by Dice Holdings Inc.
 
Among those hiring, 49% said that they would hire 10% more employees in the second half of the year than in the first. Another 28% said they plan to increase hiring by 11% to 20%.

Also, 69% of respondents said they do not believe layoffs are likely at their companies within the next six months, compared to 61% in a previous survey released in November.

"Businesses seem to be gradually loosening their grip on the hiring process as the economy improves,"� comments Dice President and CEO Scot Melland. "At the same time, professionals are more willing to jump ship right now. As the employment cycle strengthens, companies are likely to find it more challenging to keep their top talent."�

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