As turnover becomes a bigger worry, and bigger expense, in a tightening labor market, companies beyond Wal-Mart, and Credit Suisse are exploring, “The Algorithm That Tells The Boss Who Might Quit.” WSJ reports the median cost of turnover for most jobs is about 21% of an employee’s annual salary. Sales jobs had the lowest retention rate of the occupations studied, just shy of 3 1/2 years. What works? The ability to change jobs internally makes people ‘sticky’ or more likely to stay on. The predictors? Transitions – whether a promotion or a personal milestone, such as maternity leave – increased the probability of deciding to leave. Micron, found that people who relocated for a job were most likely to leave (another transition). SelectLeaders Job Network tells employers the greatest predictor of success in hiring is how accurately the job is described. Research confirms how accurately the job is described is the best forecast of retention as well.
March 18, 2015