by Paul R. Bernthal, Ph.D., and Richard S. Wellins, Ph.D.

The report is based on 745 employee responses to a retention survey submitted to 118 organizational members of the DDI HR Benchmark Group in 2000. Researchers found a moderate but significant correlation between an employee's job satisfaction and intent to leave.

More than one-third (36.5%) of (HR) human resource professionals view retention as one of their most pressing issues. For others, retention is merely one of the many complex HR issues demanding attention. Yet, almost half of the participating organizations (49%) have no formal strategy for addressing retention. They might be unaware of what factors to consider or how to change them. In addition, the other demands of running an organization can supersede most efforts to promote retention.

WHY EMPLOYEES LEAVE

An employee's relationship with his or her supervisor or manager and work-life balance are the most important determinants for staying with an organization.

The top five factors affecting an employee's decision to stay or leave according to the employees surveyed are:

Significantly, employee's 3rd, 4th, and 5th most important reasons are ranked 19th, 20th, and 21st on the HR professionals list of reasons. This dramatic difference shows that HR professionals severely discount the important of cooperation and trust as well as motivational fit.

RETENTION TACTICS

According to HR professionals' ratings, the five most-valued retention interventions are:

When retention is above average in comparison to the competition, organizations tend to experience greater customer satisfaction, employee productivity, and profitability.

SURVEY CONCLUSIONS

Turnover is a costly drain on company resources.

Today's workers have different priorities. Young people are less likely to spend their entire careers at one organization than in the past.

Retention is a lead indicator that does not show its impact for months or even years. Organizations are more likely to focus their attention on more immediate needs instead of the long-term retention of employees.

Although compensation matters, employees are more concerned with the level of fulfillment they get from their jobs. They also feel that working with an understanding supervisor or manager in a cooperative and trusting work environment is important. Employees care about their work and how it fits into their lives. Organizations should focus on making sure that the people they hire are a good match for the job and the work culture.