Upper Saddle River, N.J. - May 30, 2006
- Compensation Resources, Inc. has released the results of its 2006 Turnover Survey. The purpose of this study was to obtain turnover statistics and trends from a broad range of industries and company sizes. Data was collected in April and May 2006, and was compiled from survey questions that were developed by
CRI and distributed to companies in over 12 industrial classifications, representing publicly-traded, privately-held, and not-for-profit organizations.
Results indicated that for the twelve-month period ending March 31, 2006, the average
voluntary turnover rate was 14.3%. Overall, respondents indicated this rate has either increased (39%) or remained the same (36%) as compared to the prior 12-month period. Only 25% of participants indicated the
voluntary turnover rate has decreased. Since the turnover study completed in 2004, results indicate that both
voluntary turnover and
overall turnover have slightly increased in 2006. Respondents within privately-held companies reported higher voluntary turnover rates than publicly-traded companies and not-for-profit organizations.
Among various employee groups, production level positions experienced the highest
voluntary turnover rate among all employee functional groups surveyed, with sales and administrative level positions closely following:
Year
| Executive
| Professional/
Technical
| Sales
| Administrative
| Production
|
2004
| 4.0%
| 7.6%
| 8.4%
| 10.3%
| 7.5%
|
2006
| 8.8%
| 12.7%
| 15.9%
| 13.2%
| 17.5%
|
It is interesting to note that the survey identified a shift in the motivators noted by employees for leaving the organization. While better pay and benefits were noted as the top reason for leaving an employer in 2004, it has been replaced with the desire for better opportunities and increased responsibilities in the 2006 study. More and more, employees are seeking to improve their abilities and be recognized for their work, and are no longer solely motivated by pay alone.
Companies put into effect many programs to alleviate turnover concerns. Among survey responses, 55% reported implementing enhanced communication with employees, followed by improved recruitment and selection process (17%) and updated job descriptions (17%). Open communication with employees, particularly in the areas of job coaching and performance improvement, assist managers and employers in creating a positive environment for feedback, encourages improved and increased performance, and often leads to increased job satisfaction.
About
Compensation Resources, Inc. (
CRI):
CRI provides compensation and human resource consulting services to mid-size and Fortune 500 clients, as well as public, private, not-for-profit, family-owned, and emerging companies, specializing in executive compensation, sales and incentive compensation, performance management, salary administration, and expert witness services.
