Employee Retention Issues by jal11416


									                     Employee Retention Issues

How important are relocation benefits in attracting and retaining key employees at your
company? Many businesses are benefiting from the investment made in a well-executed move -
whether the advantage comes in the form of lowered costs, improved employee morale, or a more
robust pool of recruits.
    Employers are only now waking up to the true costs of losing good people. Instead of focusing on
new hires, while ignoring the fact that as many or more people are leaving, organizations have to get a
lot smarter about retention. In the most advanced knowledge economies, like the U.S., almost 80% of
workers are information workers. Organizations have to adjust their thinking to the new realities of
talent management in knowledge economies. An enormous part of that is in identifying and keeping
critical talent.
    Winning the war for talent is critical. The true cost of an average performer leaving is 1.5 times
salary. That translates to millions of dollars each year for a mid-size company with average turnover.
Where top performers are concerned, the costs are incalculable. A famous software pioneer once
estimated that the loss of a top engineer to a key competitor could easily cost his company more than
one billion dollars over the course of that employee’s career. Retention of key performers is a greater
challenge than recruitment. By far the most important tool in leveraging talent is in making employees
(especially high performers) feel valued and appreciated.
    According to the Worldwide Employee Relocation Council (ERC), some companies are meeting this
challenge by using their relocation policies to retain talent. The 2007 ERC New Hire report shows that
the tighter labor market means that companies are seeking creative ways to enhance retention efforts,
with nearly 80% of companies currently using their relocation policy as a tool. Companies are also
involving their relocation department in strategic planning for employee retention, as well as
    Organizations that fail to effective relocate employees are losing millions of dollars in productivity
and turnover costs each year. Calculations by Gallup and by the Center for Talent Retention estimate
the cost of disengaged workers to the U.S. economy at billions of dollars every year. The additional toll
on family life is more difficult to estimate.
    Most corporations today face considerable challenges in developing and maintaining effective
relocation programs. They need to control their bottom-line costs, but also increase employee
recruiting, retention, and productivity. Relocation programs also need to reflect the company’s culture
and meet its business objectives.
    Paxton International can assist you with a review your current relocation policy and will provide an
objective analysis of how competitive your program is in the marketplace. Call us at 703.321.4060 or
email johnc@paxton.com. We will discuss with you the many relocation services available that can
enhance the benefits to your relocating transferees that will increase their satisfaction levels, at little or
no cost to the corporation.


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