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By DAVID SCHEPP, THE JOURNAL NEWS
As problematic as it is for some workers to change jobs, employers also face difficulties in replacing employees who have left for greener pastures.
After accounting for lost productivity, lost time interviewing prospective employees and other expenses, the cost to replace a single worker may exceed $50,000 in some instances, says Jeff Kaye, chief executive at Kaye/Bassman International, a Plano, Texas-based outplacement firm.
What's more, the nation's expanding economy and improving jobless numbers may make things even more difficult — and expensive — for employers.
"As the job marketplace continues to heat up, companies are going to start to realize they need to keep their current staff as happy as possible," says Harris Cohen, managing partner at Princeton Search Group, a Melville, N.Y.-based placement agency. "They're going to want to limit turnover."
But in today's volatile business climate, that may be difficult.
Marketing executive Adam Pollock left his job at Sony BMG last year amid the company's restructuring efforts, attributable in part to competitive pressures caused by Internet music swapping.
It was an environment, the 40-year-old Brooklynite says, that wasn't ideal.
"A lot of people were constantly worried about layoffs," Pollock says. "It wasn't a stable place to be."
Workers jittery about their livelihoods can be a huge source of brain drain for companies amid restructuring, bankruptcy proceedings or other challenging situations, says Nicole Aliev, president of Namaqua Consulting, a workplace consultancy based in Mamaroneck.
That's one reason that during pre-merger talks, "HR is frequently involved in identifying top performers that the companies do not want to risk losing once the merger is announced," Aliev says.
Absent a merger or other extraordinary event, employers can take steps beyond buying lunch on Fridays to boost morale and increase loyalty among workers.
Given the focus these days on training and career development, employees respond positively to employers who help advance their careers.
Usually, companies that invest the most in training are the ones who are more highly regarded by potential and current employees, says Princeton Search's Cohen.
Beyond training, companies that appreciate the demands that family life and other outside pressures exert on employees typically have higher morale and retention rates, Cohen says.
Given the costs associated with replacing a worker, employees might be able to use that bit of knowledge as leverage in improving their current work situations.
Those who approach their employers with justified grievances and advise them of the costs involved can make a compelling argument for managers "to take note and do whatever they could to keep you and to try to make you happy," Cohen suggests.
While rare, he nevertheless says that it would be interesting to see what would happen if people started doing just that.
"I'd be surprised if it didn't have some impact on an employer's decision to try to make change that would positively affect the employees and hopefully eliminate the turnover," he says.
Still, speaking up isn't a panacea. And often it all seems to fall on deaf ears.
"Companies say, 'OK, I hear what you're saying,' but don't take them seriously," Cohen says.
Then a month or two later when the employee shows up and gives them a resignation letter, he says, "they act completely shocked."
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Rising costs benefit workers seeking greener
pastures
February 21, 2005
By DAVID SCHEPP, THE JOURNAL NEWS
As problematic as it is for some workers to change jobs, employers also face difficulties in replacing employees who have left for greener pastures.
After accounting for lost productivity, lost time interviewing prospective employees and other expenses, the cost to replace a single worker may exceed $50,000 in some instances, says Jeff Kaye, chief executive at Kaye/Bassman International, a Plano, Texas-based outplacement firm.
What's more, the nation's expanding economy and improving jobless numbers may make things even more difficult — and expensive — for employers.
"As the job marketplace continues to heat up, companies are going to start to realize they need to keep their current staff as happy as possible," says Harris Cohen, managing partner at Princeton Search Group, a Melville, N.Y.-based placement agency. "They're going to want to limit turnover."
But in today's volatile business climate, that may be difficult.
Marketing executive Adam Pollock left his job at Sony BMG last year amid the company's restructuring efforts, attributable in part to competitive pressures caused by Internet music swapping.
It was an environment, the 40-year-old Brooklynite says, that wasn't ideal.
"A lot of people were constantly worried about layoffs," Pollock says. "It wasn't a stable place to be."
Workers jittery about their livelihoods can be a huge source of brain drain for companies amid restructuring, bankruptcy proceedings or other challenging situations, says Nicole Aliev, president of Namaqua Consulting, a workplace consultancy based in Mamaroneck.
That's one reason that during pre-merger talks, "HR is frequently involved in identifying top performers that the companies do not want to risk losing once the merger is announced," Aliev says.
Absent a merger or other extraordinary event, employers can take steps beyond buying lunch on Fridays to boost morale and increase loyalty among workers.
Given the focus these days on training and career development, employees respond positively to employers who help advance their careers.
Usually, companies that invest the most in training are the ones who are more highly regarded by potential and current employees, says Princeton Search's Cohen.
Beyond training, companies that appreciate the demands that family life and other outside pressures exert on employees typically have higher morale and retention rates, Cohen says.
Given the costs associated with replacing a worker, employees might be able to use that bit of knowledge as leverage in improving their current work situations.
Those who approach their employers with justified grievances and advise them of the costs involved can make a compelling argument for managers "to take note and do whatever they could to keep you and to try to make you happy," Cohen suggests.
While rare, he nevertheless says that it would be interesting to see what would happen if people started doing just that.
"I'd be surprised if it didn't have some impact on an employer's decision to try to make change that would positively affect the employees and hopefully eliminate the turnover," he says.
Still, speaking up isn't a panacea. And often it all seems to fall on deaf ears.
"Companies say, 'OK, I hear what you're saying,' but don't take them seriously," Cohen says.
Then a month or two later when the employee shows up and gives them a resignation letter, he says, "they act completely shocked."
Executive Search | Recruitment Process Outsourcing | Contract Staffing | College Recruiting | Site Map
This site is optimized for 1024x768 resolution and Internet Explorer.
Copyright © 2010 PrincetonOne