TM - August 2007 - (Page 38) recruitment & retention assessment & evaluation compensation & benefits performance management learning & development succession planning [succession planning]by Norman Schippers Retaining High Potentials According to a recent study by the Society for Human Resource Management, 12 percent of the workforce, on average, voluntarily resigned January through August 2006. More-current statistics do not look any more promising — a February 2007 survey by Salary.com revealed that nearly 66 percent of tenured employees (people who have been in their positions for three to 10 years) plan to look for a new job in the next three months. The threat of increased turnover is grabbing the attention of management, as well as human resources. The productivity costs of losing 12 percent of your workforce is certainly enough for companies to take action, but when combined with the financial and market impact, addressing retention issues quickly escalates to the top of upper management’s priority list. Studies show employee turnover can cost companies up to 40 percent of their annual profit. That’s for the turnover of all employees, regardless of their performance levels. The financial impact of losing a significant number of highpotential employees (those who have been identified as your future leaders) can be exponentially higher. Who are these people who can dramatically affect a company’s bottom line? The criteria for being identified as a high potential varies among organizations, yet nearly all share these traits: • They have the skills, experience and leadership potential the company needs to execute its future business strategy. • They are trusted and respected not only by their managers but also by their peers and subordinates. • They are open to taking on new tasks and willing to take risks to accomplish business goals. • They demonstrate confidence in their abilities and are willing to admit what they don’t know. • They consistently produce tangible and measurable results. With such an extensive list of competencies and 38 talent management magazine www.TalentMgt.com http://Salary.com http://www.TalentMgt.com
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