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2006 U.S. Job Retention POLL FINDINGS A Study by the Society for Human Resource Management and CareerJournal.com

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Page 1: 2006 U.S. Job Retention - SHRM · passively job searching. Active job seekers are defined as employees who are looking for a new job, going on interviews and potentially ready to

2006 U.S. Job Retention

POLL FINDINGSA Study by the Society for Human Resource Managementand CareerJournal.com

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Page 3: 2006 U.S. Job Retention - SHRM · passively job searching. Active job seekers are defined as employees who are looking for a new job, going on interviews and potentially ready to

2006 U.S. Job Retention

POLL FINDINGS

Jessica FrinckeSurvey Research Specialist

ResearchSHRMDecember 2006

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This report is produced by the Society for Human Resource Management (SHRM). All content is for informational purpos-es only and is not to be construed as a guaranteed outcome. The Society for Human Resource Management cannot accept responsibility for any errors or omissions or any liability result-ing from the use or misuse of any such information.

© 2006 Society for Human Resource Management. All rights reserved.

This publication may not be reproduced, stored in a retrieval system or transmitted in whole or in part, in any form of by any means, electronic, mechanical, photocopying, record-ing or otherwise, without the prior written permission of the Society for Human Resource management, 1800 Duke Street, Alexandria, VA 22314, USA.

For more information, please contact:

SHRM Research Department1800 Duke Street, Alexandria, VA 22314, USAPhone: (703) 548-3440 Fax: (703) 535-6432Web: www.shrm.org/research

06-0689

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vi About This Report

vi About SHRM

vi About CareerJournal.com

vii About SHRM Research

vii About the Author

1 Methodology

3 Key Findings

4 Poll Results

4 Current Job Search and Changes in the Job Market/Economy

9 Workforce Voluntary Resignations

13 Retention Efforts

21 Reasons Employees Voluntarily Leave Their Organizations

27 Perceived Threats to Employee Retention

32 Conclusions

34 Demographics

37 SHRM Survey Reports

Contents

2006 U.S. Job Retention Poll Findings

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vi 2006 U.S. Job Retention Poll Findings

About This Report

In September 2006, the Society for Human Resource Management (SHRM) and CareerJournal.com, a Web site of The Wall Street Journal, jointly conducted the 2006 SHRM/CareerJournal.com Job Retention Online Poll1 to gauge the effectiveness of various retention strategies from the perspectives of human resource (HR) professionals and employees. The results of this poll were compared with the SHRM/CareerJournal.com Job Recovery/Job Retention Polls conducted in 2004 and 2005. The polls were nearly identical, except for a few modifications, and the results of the three polls will be compared when applicable throughout this report.

Comparison of HR professionals’ perceptions of employee attitudes with actual employee attitudes shows the extent to which HR professionals are in touch with employees in their organizations. The more attuned HR professionals are to employee perceptions, the better able they are to respond to employee concerns. Conversely, the less attuned HR professionals are to employees, the more they need to determine why their perception of employee atti-tudes is inaccurate and how to modify it so that they can be responsive to employees.

About SHRM

The Society for Human Resource Management (SHRM) is the world’s largest association devoted to human resource management. Representing more than 210,000 individual members, the Society’s mission is to serve the needs of HR professionals by providing the most essential and comprehensive resources available. As an influential voice, the Society’s mission is also to advance the human resource profession to ensure that HR is recognized as an essential partner in developing and executing organizational strategy. Founded in 1948, SHRM cur-rently has more than 550 affiliated chapters within the United States and members in more than 100 countries. Visit SHRM Online at www.shrm.org.

About CareerJournal.com

CareerJournal.com is the premier career Web site targeted to executives, managers and profession-als. Featuring more than 100,000 top-level jobs and 7,000 articles on all aspects of job hunting and career management, the site attracts more than 800,000 unique visitors monthly. CareerJournal.com features salary data, interviewing and negotiating tips, popular columns from The Wall Street Journal and exclusive content from its own dedicated news staff. The site has received numerous awards, including

ResearchSHRM

1The SHRM/CareerJournal.com 2006 Job Retention Poll instruments are available upon request by contacting the SHRM Survey Program at [email protected] or by phone at 703-535-6301.

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ResearchSHRM

vii2006 U.S. Job Retention Poll Findings

WEDDLE’s User’s Choice Award, Best of the Web Award from Forbes magazine, EPpy award for Best Internet Classified Service, Standard of Excellence WebAward, as well as recognition from a range of newspapers and trade publications.

About SHRM Research

SHRM Research, as part of the Knowledge Development Division supporting SHRM, produces high-quality, leading-edge research and provides expertise on human resource and business issues. It acts as an advisor to SHRM for the purpose of advancing the HR profession and generates and pub-lishes cutting-edge research used by human resource professionals to develop their knowledge and to provide strategic direction to their organizations. As leading experts in the field of HR, SHRM Research works closely with leading academics, policy makers and business leaders.

About the Author

Jessica Frincke is a survey research specialist for SHRM. Her responsibilities include designing, conduct-ing and analyzing surveys on HR-related topics. She has worked in survey research for the past six years.

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1 2006 U.S. Job Retention Poll Findings

Methodology

Both versions of the poll were developed by the SHRM Survey Program and CareerJournal.com. An internal committee of

SHRM staff with HR expertise also provided valuable insight and recommendations for the instruments. For comparison purposes, both employees and HR profes-sionals received similar questions.

HR Professional SampleThe HR professional sample was randomly selected from SHRM’s membership database, which at the time included approximately 210,000 individual HR professional members. Only members who had not participated in an SHRM survey or poll in approximately the last six months were included in the sampling frame. Members who were students, consultants, academics, located internationally or had no e-mail address on file were excluded from the sampling frame. In September 2006, an e-mail that included a link to the SHRM/CareerJournal.com 2006 Job Retention Poll was sent to 3,000 randomly selected SHRM members. Of these, 1,807 e-mails were successfully delivered, and 367 HR profession-als responded, yielding a response rate of 20%. The survey was online for a period of three weeks, and three e-mail reminders were sent to nonrespondents in an effort to increase response rates.

Employee SampleA similar poll was completed by 462 employees. The employee data were gathered from a convenience sample of visitors to the CareerJournal.com Web site—the online poll was given to every fifth visitor of the site. CareerJournal.com visitors tend to be executive-level professionals who are both active and passive job seekers. Readers should proceed with caution when generalizing these results to all employees.

Notes and CaveatsDifferences: Conventional statistical methods were used to determine if observed differences were statistically significant (i.e., there is a small likelihood that the differences occurred by chance). Analyses by HR professionals’ organization size, industry and sector and employees’ gender, age, number of years in the workforce and level of current position were conducted, and significant differences are noted in this report where appropriate. Organizations were grouped into three categories based on the number of employees at the HR professional’s business location: small (1-99 employees), medium (100-499 employees) and large (500 and more employees).

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ResearchSHRM

22006 U.S. Job Retention Poll Findings

ResearchSHRM

Generalization of results: As with any research, read-ers should exercise caution when generalizing results and take individual circumstances and experiences into consideration when making decisions based on these data. While SHRM is confident in its research, it is prudent to understand that the results presented in this report are only truly representative of the sample of HR professionals and employees respond-ing to the poll.

Number of respondents: The number of respondents (indicated by “n”) is noted in all tables and figures and indicates the number of individuals (not organi-zations) who provided data relevant to a particular table or figure. The number of respondents varies from table to table because some respondents did not answer all of the questions. Individuals may not have responded to a question on the poll because the question or some of its parts were not applicable or because the requested data were unavailable. This also accounts for the varying number of responses from one table to another or within a table.

Confidence level and margin of error: A confidence level and margin of error give readers some measure of how much they can rely on survey responses to represent all of SHRM members. Given the level of response to the survey, SHRM Research is 95% con-fident that responses given by all respondents can be generalized to all SHRM members, in general, with a margin of error of approximately 5%. For example, 76% of the respondents reported that they worked at for-profit organizations. With a 5% margin of error, the reader can be 95% certain that between 71% and 81% of SHRM members work at for-profit organiza-tions. It is important to know that as the sample size decreases, the margin of error increases.

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3 2006 U.S. Job Retention Poll Findings

Key Findings

A pproximately three-fourths of currently employed respondents are either actively or passively job searching. Active job seekers

are defined as employees who are looking for a new job, going on interviews and potentially ready to leave their organizations. Passive job seekers are defined as employees who have posted resumes online or are browsing classifieds, but who are not yet certain they want to leave their organizations.

More than half of the employee respondents report-ed seeing an improvement in the job market/job opportunities since the beginning of 2006. Less than one-half of currently employed respondents indicated that with continued improvements in the economy and job market, they were very likely to search for another job. When factoring in the employee’s career level, it appears that organizations are more at risk of losing nonmanagement and middle-management employees than executive-level employees as the economy and the job market continue to improve. In contrast to employee respondents, only one out of seven HR professionals expected resignations from middle-management staff.

Nearly three-fourths of HR professionals reported their concern about the number of voluntary resig-nations their organizations had received since the beginning of 2006.

In response to improvements in the economy and the job market, nearly half of respondents indicated that their organizations had implemented special process-es to retain staff. Promoting qualified employees, offering competitive merit increases/salary adjust-ments and providing career development opportuni-ties were equally popular retention processes used among these organizations. Employees and HR pro-fessionals cited career development opportunities, competitive salary and flexible work schedules as the most effective employee retention efforts.

Better compensation, career opportunities and dis-satisfaction with potential for career development opportunities were among the top reasons that employees chose to leave their jobs, according to employees and HR professionals. These findings cor-respond with what HR professionals reported were some of the greatest threats posed to employee retention at their organizations.

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42006 U.S. Job Retention Poll Findings

Poll Results

Current Job Search and Changes in the Job Market/EconomyCurrent Job Search (Employees)• Three-fourths of employee respondents reported being currently employed, compared with 70% in 2004 and

77% in 2005.

Figure 1 Currently Employed* (Employees)

*In 2006, the question wording was changed from “currently employed outside of the home” to “currently employed.”

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

2004 (n = 506)

2005 (n = 465)

2006 (n = 462)

70%

77%75%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

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5 2006 U.S. Job Retention Poll Findings

• Forty-one percent of respondents overall indicated that they were actively searching for a job, while 35% were passively job searching and 24% were not job searching at all.

• Of those respondents who were currently employed, the largest proportion indicated they were passively job searching (41%), while similar proportions of respondents were actively job searching (31%) or not job searching at all (28%).

• The 2006 results were not significantly different from the 2004 or 2005 results.

• Among those employed, female employees were more likely to report not job searching than were male employees.

Figure 2 Current Job Search (Employees)

Note: Percentages may not total 100% due to rounding. “Overall” category includes all respondents, regardless of employment status; “among those employed” includes only the respondents who indicated that they were currently working. Passive job seekers were defined as employees who had posted resumes online or were browsing classifieds, but who were not yet certain they wanted to leave their organizations. Active job seekers were defined as employees who were looking for a new job, going on interviews and potentially ready to leave their organizations. Employee data were gathered from a convenience sample of CareerJournal.com Web site visitors through a pop-up window directing them to the online survey. Readers should proceed with caution when generalizing these results.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

Not job searching at all Passively job searching Actively job searching

50%

40%

30%

20%

10%

0%

24%

28%

35%

41% 41%

31%

Overall (n = 462) Among Those Employed (n = 345)

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62006 U.S. Job Retention Poll Findings

Improvement in the Job Market/More Job Opportunities in 2006 (Employees)• More than half of employees (54%) reported seeing an improvement in the job market/job opportunities

since the beginning of 2006. Although this question was not posed to the HR professionals, the informa-tion collected in the SHRM/Rutgers Leading Indicator of National Employment (LINE™),2 which currently tracks monthly changes in U.S. manufacturing and service-sector jobs, shows that the market continued to improve in 2006.

Figure 3Improvement in the Job Market/ Job Opportunities Since the Beginning of 2006 (Employees)

Note: Employee data were gathered from a convenience sample of CareerJournal.com Web site visitors through a pop-up window directing them to the online survey. Readers should proceed with caution when generalizing these results.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

(n = 462)

Yes54%

No46%

2SHRM/Rutgers Leading Indicator of National Employment (LINETM). Retrieved November 10, 2006, from www.shrm.org/line.

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7 2006 U.S. Job Retention Poll Findings

Likelihood of Beginning or Increasing Job Search as Economy and Job Market Continue to Improve (Employees)• One-half of the respondents overall indicated that they were very likely to begin or increase a job search as

the economy and the job market continued to improve. Among employee respondents who were currently employed, slightly fewer (44%) were planning to do so.

• The results in 2006 were not significantly different from the 2004 or 2005 results.

Figure 4 Likelihood of Beginning or Increasing the Job Search as Economy and Job Market Improve (Employees)

Note: Percentages may not total 100% due to rounding. “Overall” category includes all respondents, regardless of employment status; “among those employed” includes only the respondents who indicated that they were currently working. Employee data were gathered from a convenience sample of CareerJournal.com Web site visitors through a pop-up window directing them to the online survey. Readers should proceed with caution when generalizing these results.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

Very unlikely Somewhat unlikely Somewhat likely Very likely

60%

50%

40%

30%

20%

10%

0%

12% 13%10%

Overall (n = 462) Among Those Employed (n = 345)

10%

28%

32%

50%

44%

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82006 U.S. Job Retention Poll Findings

Likelihood of Beginning or Increasing the Job Search as Economy and Job Market Improve (Employees, by Career Level)

Executive Level (n = 40)

Middle Management (n = 214)

Nonmanagement (n = 208)

Differences Based on Career Level

Overall 2.73 3.22 3.20 Middle management > executive

Nonmanagement > executive

Among those employed 2.52 3.14 3.08 Middle management > executive

Nonmanagement > executive

Note: Average ratings are based on a scale where 1 = very unlikely, 2 = somewhat unlikely, 3 = somewhat likely and 4 = very likely (higher average indicates stron-ger likelihood). “Overall” category includes all respondents, regardless of employment status; “among those employed” includes only the respondents who indicated that they were currently working. Sample sizes are based on the number of respondents providing career level; however, the averages shown are based on the actual number of respondents by career level that answered this question using the response options provided. Employee data were gathered from a convenience sample of CareerJournal.com Web site visitors through a pop-up window directing them to the online survey. Readers should proceed with caution when generalizing these results.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

Table 1

• Middle management and nonmanagement respondents were more likely to increase/begin a job search compared with executive-level respondents as the economy and the job market continued to improve.

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9 2006 U.S. Job Retention Poll Findings

Workforce Voluntary ResignationsPercentage of Workforce Voluntary Resignations in 2006 (HR Professionals)• According to HR professionals, on average, 12% of their organizations’ workforce had voluntarily resigned

since the beginning of 2006 (standard deviation = 14%).

• HR professionals from large-staff-sized organizations (average of 14% and standard deviation of 17%) reported a larger number of resignations from their workforce compared with small-staff-sized organizations (average of 9% and standard deviation of 8%).

Percentage of Voluntary Resignations Since the Beginning of 2006 (HR Professionals)

n Mean Median Standard Deviation (SD) 25th Percentile 75th Percentile

348 12% 8% 14% 4% 15%

Note: The standard deviation measures the spread around the average, thus a large standard deviation implies that many observations are far away from the overall average.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

Table 2

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102006 U.S. Job Retention Poll Findings

Concern About Number of Voluntary Resignations in 2006 (HR Professionals)• On average, HR professionals perceived themselves as more concerned than senior management about the

number of voluntary resignations their organizations had received since the beginning of 2006 (average of 2.95 for HR professionals compared with 2.60 for HR professionals’ impression of senior management’s level of concern).

• Nearly three-fourths of HR professionals (73%) indicated they were concerned (“somewhat concerned” and “very concerned”) about the voluntary resignations at their organizations, while 61% perceived senior management at their organizations to be concerned.

Figure 5 Concern About Number of Voluntary Resignations in 2006 (HR Professionals)

Note: Average ratings are based on a scale where 1 = not at all concerned, 2 = somewhat unconcerned, 3 = somewhat concerned and 4 = very concerned (higher average indicates more concern). Percentages may not total 100% due to rounding.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

Not at all concerned Somewhat unconcerned Somewhat concerned Very concerned

50%

40%

30%

20%

10%

0%

12%

19%

15%

HR Professionals’ Level of Concern (n = 365, average = 2.95)

HR Professionals’ Impression of Senior Management’s Level of Concern (n = 345, average 2.60)

21%

39%

43%

34%

18%

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11 2006 U.S. Job Retention Poll Findings

• HR professionals’ level of concern about voluntary resignations was higher in 2006 than it was in 2004 and 2005.

• HR professionals believed their senior management to be more concerned with the number of voluntary resignations in 2006 than in 2004. HR professionals’ impression of senior management’s level of concern about voluntary resignations had also increased from 2005 to 2006; however, it was not statistically significant.

• HR professionals’ impression of senior management’s average level of concern about voluntary resignations in 2006 was higher at large organizations (2.91) than at small and medium organizations (2.51 and 2.49, respectively).

Concern About Number of Voluntary Resignations in 2006 (HR Professionals, by Year)

2004 (n = 389)

2005 (n = 435)

2006 (n = 367) Comparison

HR professional’s level of concern 2.69 2.70 2.95 2006 > 2004 2006 > 2005

HR professional’s impression of senior management’s concern

2.37 2.43 2.60 2006 > 2004

Note: Average ratings are based on a scale where 1 = not at all concerned, 2 = somewhat unconcerned, 3 = somewhat concerned and 4 = very concerned (higher average indicates more concern). Sample sizes are based on the number of respondents by year; however, the averages shown are based on the actual number of respondents by year that answered this question using the response options provided.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

Table 3

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122006 U.S. Job Retention Poll Findings

Level of Staff Most Likely to Voluntarily Resign (HR Professionals)• Nonmanagement-level employees were most likely to voluntarily resign from their current position as the

economy and the job market continued to improve, according to 71% of HR professionals. HR professionals expected far less voluntary resignations from middle management (14%) and did not expect executive-level staff to voluntarily resign.

• Fifteen percent of HR professionals predicted that employees from all three levels were likely to voluntarily resign.

• The 2006 results were not significantly different from the 2004 or 2005 results.

• Compared with the nonprofit sector, middle-management employees in the publicly owned for-profit sector were more likely to voluntarily resign as the economy and job market continued to improve, according to responding HR professionals.

Figure 6 Level of Staff Most Likely to Voluntarily Resign (HR Professionals)

Note: Percentages may not total 100% due to rounding.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

Executive level Middle management Nonmanagement All three levels

80%

70%

60%

50%

40%

30%

20%

10%

0%1%

2004 (n = 385) 2005 (n = 432) 2006 (n = 362)

1% 0%

19% 20%

14%

69% 68%71%

12% 12%15%

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13 2006 U.S. Job Retention Poll Findings

Retention EffortsSpecial Retention Processes Used by Organizations in Response to Job Market Improvements (HR Professionals)• Almost one-half (49%) of HR professionals reported that their organizations were implementing special

retention processes as a direct result of continuing improvements in the job market/economy.

• In 2005 and 2006, a greater proportion of organizations were implementing special retention processes than in 2004.

• HR professionals from large organizations were more likely to report that their organizations were imple-menting special processes to retain staff compared with HR professionals from small organizations.

Figure 7 Percentage of Organizations Implementing Special Retention Processes (HR Professionals)

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

2004 (n = 388)

2005 (n = 432)

2006 (n = 365)

60%

50%

40%

30%

20%

10%

0%

35%

49% 49%

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142006 U.S. Job Retention Poll Findings

• In 2006, promoting qualified employees (69%), offering competitive merit increases/salary adjustments (68%) and providing career development opportunities (68%) were the top three retention processes used by organizations to retain staff as a direct response to continuing improvements in the economy.

• The 2006 results were not significantly different from the 2004 or 2005 results.

• Overall, 7% of HR professionals reported that they offered stock options to retain staff, and HR profession-als from the publicly owned for-profit sector were more likely than those from the privately owned for-profit sector to cite this process.

Special Retention Processes Used by Organizations in Response to Job Market Improvements (HR Professionals, by Year)

2004 (n = 133)

2005 (n = 211)

2006 (n = 177)

Promotion of qualified employees 65% 62% 69%

Competitive merit increases/salary adjustments 58% 70% 68%

Career development opportunities 68% 64% 68%

Schedules conducive to work/life balance (e.g., telecommuting, compressed work weeks, etc.)

34% 44% 44%

Bonuses 49% 39% 44%

Other competitive benefits* 20% 23% 19%

Stock options 8% 6% 7%

More attractive retirement packages 11% 9% 6%

* Includes benefits such as employee recognition and reward programs, training programs/mentoring/coaching, educational assistance and wellness programs.

Note: Based only on respondents who indicated that their organizations had implemented special retention processes as a result of improvements to the job market. Percentages do not total 100% as respondents were allowed multiple choices. Data sorted in descending order by 2006 column.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

Table 4

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15 2006 U.S. Job Retention Poll Findings

Benefits Offered to Retain Employees in 2006 (Employees)• Two-thirds (66%) of currently employed respondents reported that since the beginning of 2006 their

employer did not offer any benefits to help keep employees from moving to other companies (see Figure 8).

• The most commonly reported benefits offered by employers to help keep employees from leaving their organizations were competitive salaries (55%), bonuses (52%), career development opportunities (45%) and promotion of qualified employees (43%) (see Figure 9).

Figure 8Current Employers Offering Benefits to Retain Employees Since Beginning of 2006 (Employees)

Note: Only respondents who indicated that they were currently employed were asked this question. Employee data were gathered from a convenience sample of CareerJournal.com Web site visitors through a pop-up window directing them to the online survey. Readers should proceed with caution when generalizing these results.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

(n = 345)

Yes17%

No66%

Don’t know17%

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162006 U.S. Job Retention Poll Findings

Figure 9Type of Benefits Offered by Current Employers to Retain Employees Since the Beginning of 2006 (Employees)

Note: Only respondents who indicated that their current employer offered benefits to help keep employees from moving to other companies since the beginning of 2006 were asked this question. Employee data were gathered from a convenience sample of CareerJournal.com Web site visitors through a pop-up window directing them to the online survey. Readers should proceed with caution when generalizing these results. Data are sorted in descending order.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

0% 10% 20% 30% 40% 50% 60%

Competitive salary 55%

45%

43%

38%

34%

31%

28%

14%

14%

12%

5%

7%

52%Bonuses

Career development opportunities

Promotion of qualified employees

Flexible work schedules

Competitive merit increases

Stock options

Competitive vacation and holiday benefits

Telecommuting

Childcare (paid for, subsidized or provided by employer)

Increased health care benefits

Early eligibility for benefits

Other

(n = 58)

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17 2006 U.S. Job Retention Poll Findings

Perceived Effectiveness of Employee Retention Strategies• Employees and HR professionals were asked about the effectiveness of specific employee retention strate-

gies. The three most effective retention strategies, as perceived by employees and HR professionals, were career development opportunities (52% of employees, 46% of HR professionals), competitive salary (50% of employees, 59% of HR professionals) and flexible work schedules (29% of employees, 47% of HR professionals).

Table 5 Perceived Effectiveness of Employee Retention Strategies

Note: Employees were asked which items would be most effective in encouraging them to stay with an employer or with their current employer. HR professionals were asked which retention efforts they believed to be most effective, regardless of whether the strategy was used at their organizations. Employee data were gathered from a convenience sample of CareerJournal.com Web site visitors through a pop-up window directing them to the online survey. Readers should proceed with caution when generalizing these results. Percentages do not total 100% as respondents were allowed up to three choices. Data are sorted in descending order by employee column.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

Employees (n = 450)

HR Professionals (n = 357)

Career development opportunities 52% 46%

Competitive salary 50% 59%

Flexible work schedules 29% 47%

Promotion of qualified employees 28% 38%

Bonuses 27% 15%

Competitive merit increases 20% 19%

Competitive vacation and holiday benefits 16% 19%

Increased health care benefits 14% 25%

Telecommuting 12% 6%

Stock options 7% 4%

Childcare (paid for, subsidized or provided by employer) 4% 4%

Early eligibility for benefits 4% 4%

Other 3% 5%

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182006 U.S. Job Retention Poll Findings

Perceived Effectiveness of Employee Retention Strategies (Employees)• Compared with female employees, a greater proportion of male employees perceived bonuses and stock

options as effective strategies in encouraging them to stay with an employer or current employer. Women were more likely to favor flexible work schedules compared with men.

Table 6 Perceived Effectiveness of Employee Retention Strategies (Employees, by Gender)

Note: Employee data were gathered from a convenience sample of CareerJournal.com Web site visitors through a pop-up window directing them to the online survey. Readers should proceed with caution when generalizing these results. Percentages do not total 100% as respondents were allowed up to three choices. Sample sizes are based on the number of respondents providing gender; however, the percentages shown are based on the actual number of respondents by gender who answered this question using the response options provided.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

Male (n = 238)

Female (n = 224)

Differences Based on Gender

Bonuses 31% 22% Male > female

Flexible work schedules 19% 41% Female > male

Stock options 10% 4% Male > female

• Overall, early eligibility for benefits (4%) and telecommuting (12%) were reported as effective retention strategies by a relatively small percentage of employees, yet employees aged 55 or older were more likely to cite these strategies than employees aged 54 or younger.

• Employees with less than six years in the workforce were more likely to favor flexible work schedules than employees with 21+ years in the workforce.

Table 7 Perceived Effectiveness of Employee Retention Strategies (Employees, by Age)

Note: Employee data were gathered from a convenience sample of CareerJournal.com Web site visitors through a pop-up window directing them to the online survey. Readers should proceed with caution when generalizing these results. Percentages do not total 100% as respondents were allowed up to three choices. Sample sizes are based on the number of respondents providing age; however, the percentages shown are based on the actual number of respondents by age who answered this question using the response options provided.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

35 or Younger (n = 171)

36 to 54 (n = 239)

55 or Older (n = 52)

Differences Based on Age

Early eligibility for benefits 2% 3% 14% 55 or older > 35 or younger, 36 to 54

Telecommuting 9% 10% 30% 55 or older > 35 or younger, 36 to 54

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19 2006 U.S. Job Retention Poll Findings

• Executive-level employees, when compared with nonmanagement-level employees, were more likely to indicate bonuses as an effective strategy in encouraging them to stay with an employer or their current employer.

• Promoting qualified employees and offering career development opportunities were cited as effective reten-tion strategies by more middle-management employee respondents compared with executive-level staff. Middle management was also more likely to report competitive merit increases than nonmanagement.

• Compared with executives, a greater proportion of nonmangement staff reported promoting qualified employees and providing career development opportunities as more effective retention strategies.

Table 8 Perceived Effectiveness of Employee Retention Strategies (Employees, by Career Level)

Note: Employee data were gathered from a convenience sample of CareerJournal.com Web site visitors through a pop-up window directing them to the online survey. Readers should proceed with caution when generalizing these results. Percentages do not total 100% as respondents were allowed up to three choices. Sample sizes are based on the number of respondents providing career level; however, the percentages shown are based on the actual number of respondents by career level who answered this question using the response options provided.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

Executive Level (n = 40)

Middle Management (n = 214)

Nonmanagement (n = 208)

Differences Based on Career Level

Bonuses 46% 28% 23% Executive > nonmanagement

Promotion of qualified employees 8% 30% 29% Middle management > executive

Nonmanagement > executive

Career development opportunities 26% 52% 56% Middle management > executive

Nonmanagement > executive

Competitive merit increases 23% 26% 14% Middle management > nonmanagement

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202006 U.S. Job Retention Poll Findings

Perceived Effectiveness of Employee Retention Strategies (HR Professionals)• Promotion of qualified employees was perceived by HR professionals as a more effective retention strategy

in 2006 (38%) than in 2004 (31%). Bonuses were cited by 22% of HR professionals in 2004, and this number decreased to 15% in 2006.

• Over half of HR professionals from large-staff-sized organizations (54%) cited career development opportuni-ties as a more effective retention strategy compared with those from small-staff-sized organizations (38%).

• HR professionals in the government sector (46%) were more likely to indicate that increasing health care benefits was an effective retention tool compared with HR respondents from the publicly owned for-profit sector (17%), although one-fourth of HR professionals overall reported using this as a retention tool.

Table 9 Perceived Effectiveness of Employee Retention Strategies (HR Professionals, by Year)

Note: Based on all respondents, regardless of whether the strategy was used at their organizations. Percentages do not total 100% as respondents were allowed up to three choices. The 2005 data were not included above because HR respondents were able to select more than three choices. Data are sorted in descending order by 2006 column.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

2004 (n = 377)

2006 (n = 357)

Differences Based on Year

Competitive salary 59% 59%

Flexible work schedules 45% 47%

Career development opportunities 47% 46%

Promotion of qualified employees 31% 38% 2006 > 2004

Increasing health care benefits 28% 25%

Competitive merit increases 24% 19%

Competitive vacation and holiday benefits 18% 19%

Bonuses 22% 15% 2004 > 2006

Telecommuting 3% 6%

Other competitive benefits 2% 5%

Childcare (paid for, subsidized or provided by employer) 5% 4%

Early eligibility for benefits 3% 4%

Stock options 3% 4%

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21 2006 U.S. Job Retention Poll Findings

Reasons Employees Voluntarily Leave Their Organizations• Employees and HR professionals agreed on three of the top four reasons employees left their organiza-

tions—better compensation elsewhere (30% of employees, 40% of HR professionals), career opportunity elsewhere (27% of employees, 48% of HR professionals) and dissatisfaction with potential for career development at current organization (21% of employees, 29% of HR professionals).

• More than one-quarter (27%) of employees stated that being ready for a new experience was an important reason to begin or increase the intensity of their job search. However, only 13% of HR professionals indi-cated this as a reason that employees chose to leave their organizations.

• There were some statistically significant differences between 2006 and 2004 for employees and HR profes-sionals, as noted in Table 10.

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222006 U.S. Job Retention Poll Findings

Table 10 Reasons Employees Voluntarily Leave Their Organizations

* Indicates statistically significant difference between 2006 and 2004.

- Indicates that employees were not provided this response option.

Note: Employees were asked to indicate the reasons that they would begin or increase the intensity of a job search. HR professionals were asked the top reasons that employees chose to leave their organizations, based on their observations. Employee data were gathered from a convenience sample of CareerJournal.com Web site visitors through a pop-up window directing them to the online survey. Readers should proceed with caution when generalizing these results. Percentages do not total 100% as respondents were allowed up to three choices. The 2005 data were not included above because HR respondents were able to select more than three choices. Data are sorted in descending order by the 2006 employee column.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

Employees HR Professionals

2004 (n = 494)

2006 (n = 459)

2004 (n = 384)

2006 (n = 358)

Better compensation elsewhere 43%* 30% 48%* 40%

Career opportunity elsewhere 32% 27% 52% 48%

Ready for a new experience 21% 27%* 9% 13%*

Dissatisfaction with potential for career development at the organization 22% 21% 24% 29%

Career/industry change 11% 16%* 3% 10%*

Poor management 11% 15% 13% 16%

Burnout from current job 13% 14% 23%* 14%

Boredom with current job 18% 14% 4% 4%

Job security fears 10% 12% 8% 9%

Better benefits package elsewhere 15% 12% 9% 7%

Conflict with organization’s values or mission 8% 10% 4% 4%

Not feeling appreciated 7% 9% 16% 21%

Difficulty balancing work/life issues 5% 8%* 12% 11%

Conflict with supervisors 5% 7% 14% 14%

Starting own business 5% 6% 1% 3%

Retirement 3% 6%* 4% 8%*

Accompanying a relocating spouse/partner 10%* 5% 15%* 8%

Return to school 3% 4% 8% 9%

Perceived unfair or discriminatory treatment 4% 4% 1% 3%

Health-related issues 2% 2% 1% 3%

Childcare issues 2% 2% 5% 2%

Conflict with co-workers 1% 2% 3% 1%

Eldercare issues 1% 1% 0% 0%

Other 8% 7% 6% 6%

Cannot determine - - 1% 1%

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23 2006 U.S. Job Retention Poll Findings

Reasons Employees Voluntarily Leave Their Organizations (Employees)• Female employees were more likely to cite accompanying a relocating spouse/partner, childcare issues,

conflict with co-workers and difficulty balancing work/life issues as reasons for leaving their organizations compared with male employees. Conversely, male employees were more likely than female employees to report leaving their organizations due to career opportunities elsewhere.

Table 11 Reasons Employees Voluntarily Leave Their Organizations (Employees, by Gender)

Male (n = 238)

Female (n = 224)

Differences Based on Gender

Accompanying a relocating spouse/partner 2% 8% Female > male

Career opportunity elsewhere 34% 19% Male > female

Childcare issues 0% 3% Female > male

Conflict with co-workers 0% 3% Female > male

Difficulty balancing work/life issues 5% 10% Female > male

Note: Employees were asked to indicate the reasons that they would begin or increase the intensity of a job search. Employee data were gathered from a convenience sample of CareerJournal.com Web site visitors through a pop-up window directing them to the online survey. Readers should proceed with caution when generalizing these results. Percentages do not total 100% as respondents were allowed up to three choices. Sample sizes are based on the number of respondents providing gen-der; however, the percentages shown are based on the actual number of respondents by gender who answered this question using the response options provided.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

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242006 U.S. Job Retention Poll Findings

• Overall, 8% of employees indicated that they would begin or increase the intensity of a job search due to difficulties in balancing work/life issues and 4% reported returning to school as a reason. Employees aged 35 or younger were more likely to indicate these reasons than employees between the ages of 36 and 54. Difficulty balancing work/life issues was also a reason why more employees aged 55 or older left their organizations compared with employees aged 36 to 54.

• Employees aged 36 to 54, compared with employees aged 35 or younger, were more likely to report job security fears as a reason for leaving their organizations.

• Retirement was cited by employees aged 55 or older as a reason for leaving their organizations more often than by employees aged 36 to 54.

• Nonmanagement employees (27%) were more likely to cite dissatisfaction with potential for career develop-ment at their organizations as a reason for leaving their current jobs compared with executives (8%).

• Fifteen percent of employees overall reported poor management as a reason or potential reason for leaving their organizations. Of those, more middle-management employees (21%) indicated this reason compared with nonmanagement employees (11%).

Table 12 Reasons Employees Voluntarily Leave Their Organizations (Employees, by Age)

35 or Younger (n = 171)

36 to 54 (n = 239)

55 or Older (n = 52)

Differences Based on Age

Difficulty balancing work/life issues 11% 4% 15% 35 or younger > 36 to 54 55 or older > 36 to 54

Job security fears 6% 16% 13% 36 to 54 > 35 or younger

Retirement 0% 7% 19% 55 or older > 36 to 54

Return to school 8% 1% 2% 35 or younger > 36 to 54

Note: Employees were asked to indicate the reasons that they would begin or increase the intensity of a job search. Employee data were gathered from a convenience sample of CareerJournal.com Web site visitors through a pop-up window directing them to the online survey. Readers should proceed with caution when generalizing these results. Percentages do not total 100% as respondents were allowed up to three choices. Sample sizes are based on the number of respondents providing age; however, the percentages shown are based on the actual number of respondents by age who answered this question using the response options provided.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

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25 2006 U.S. Job Retention Poll Findings

• Returning to school was mentioned more frequently by employees with less than six years in the workforce as a reason for leaving their organizations than by employees with 11-20 and 21-30 years in the workforce.

• Overall, 6% of employees indicated that they would begin or increase the intensity of a job search because of retirement. Employees in the workforce for 21-30 and 31+ years, compared with employees with 11-20 years of workforce tenure, were more likely to cite retirement as a reason for leaving their organizations. In addition, employees with 31+ years in the workforce cited retirement more often than employees who were in the workforce for six to 10 years.

Table 13 Reasons Employees Voluntarily Leave Their Organizations (Employees, by Years in Workforce)

Less Than Six Years (n = 81)

Six to 10 Years (n = 67)

11-20 Years (n = 148)

21-30 Years (n = 111)

31+ Years (n = 55)

Differences Based on Years in Workforce

Retirement 0% 1% 2% 10% 20% 21-30 years > 11-20 years 31+ years > six to 10 years,

11-20 years

Return to school 12% 4% 3% 1% 0% Less than six years > 11-20 years, 21-30 years

Note: Employees were asked to indicate the reasons that they would begin or increase the intensity of a job search. Employee data were gathered from a convenience sample of CareerJournal.com Web site visitors through a pop-up window directing them to the online survey. Readers should proceed with caution when generalizing these results. Percentages do not total 100% as respondents were allowed up to three choices. Sample sizes are based on the number of respondents providing years in workforce; however, the percentages shown are based on the actual number of respondents by years in workforce who answered this question using the response options provided.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

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262006 U.S. Job Retention Poll Findings

Reasons Employees Voluntarily Leave Their Organizations (HR Professionals)• Overall, only 14% of HR professionals indicated that employees voluntarily left their organizations due to a

conflict with supervisors and 9% reported employees’ return to school as a reason, yet respondents in the nonprofit sector were more likely to indicate these as reasons compared with HR professionals from the privately owned for-profit sector.

• Retirement was cited by HR professionals in the government sector as a reason employees left their organizations more frequently than any other sector (publicly owned for-profit, privately owned for-profit and nonprofit organizations), although relatively few HR professionals overall (8%) indicated this as an explanation.

• Sixteen percent of HR professionals overall cited poor management as a reason employees left their organizations. Of those, HR professionals in the high-tech industry were more likely to cite this reason than HR professionals in finance and manufacturing (durable and nondurable goods).

Table 14 Reasons Employees Voluntarily Leave Their Organizations (HR Professionals, by Sector)

Publicly Owned For-Profit Organization

(n = 70)

Privately Owned For-Profit Organization

(n = 198)

Nonprofit Organization

(n = 63)

Government Agency

(n = 26)Differences

Based on Sector

Conflict with supervisors 13% 12% 27% 4% Nonprofit organization > privately owned for-profit

organization

Retirement 11% 4% 10% 36% Government agency > publicly owned

for-profit organization, privately owned for-profit organization, nonprofit

organization

Return to school 10% 6% 21% 0% Nonprofit organization > privately owned for-profit

organization

Note: Sample sizes are based on the number of respondents providing sector; however, the percentages shown are based on the actual number of respondents by sec-tor who answered this question using the response options provided. Percentages do not total 100% as respondents were allowed up to three choices.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

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27 2006 U.S. Job Retention Poll Findings

Table 15 Perceived Threats to Employee Retention (HR Professionals)

n No

ThreatSmall Threat

Moderate Threat

Large Threat

2004 Average

2005 Average

2006 Average

Differences Based on Year

Career opportunities elsewhere 351 1% 13% 48% 38% 3.09 3.08 3.22 2006 > 2004 2006 > 2005

Better compensation elsewhere 354 2% 23% 45% 31% 2.93 2.94 3.03

Burnout 351 7% 26% 48% 19% 2.83 2.72 2.79

Dissatisfaction with potential career development at the organization

354 8% 36% 36% 20% 2.72 2.70 2.69

Not feeling appreciated 351 9% 41% 31% 19% 2.50 2.50 2.60

Better benefits package elsewhere 352 11% 39% 36% 14% 2.40 2.43 2.53

Difficulty balancing work/life issues 349 13% 45% 32% 9% 2.28 2.38 2.38

Poor management 354 16% 47% 22% 15% 2.30 2.37 2.36

Conflicts with supervisors 352 16% 47% 30% 8% 2.24 2.24 2.30

Boredom 353 26% 46% 22% 7% 2.07 2.06 2.09

Retirement 348 32% 41% 19% 7% 1.89 1.94 2.01

Childcare issues 351 30% 53% 13% 4% 1.91 1.88 1.91

Conflicts with co-workers 352 29% 54% 14% 3% 1.86 1.93 1.90

Job security fears 350 41% 39% 12% 8% 1.92 1.93 1.87

Perceived unfair or discriminatory treatment

352 36% 47% 12% 5% 1.88 1.85 1.86

Return to school 351 36% 46% 16% 2% 1.81 1.76 1.84

Accompanying a relocating spouse/partner

352 34% 50% 13% 3% 1.80 1.83 1.84

Poor interpersonal relationships with co-workers

351 32% 55% 10% 3% 1.89 1.84 1.83

Health-related reasons 349 34% 55% 9% 1% 1.80 1.79 1.77

Conflict with organization’s values or mission

349 47% 40% 9% 4% 1.71 1.69 1.71

Eldercare issues 351 52% 43% 5% 0% 1.46 1.44 1.53

Note: Average ratings are based on a scale where 1 = no threat, 2 = small threat, 3 = moderate threat and 4 = large threat (higher average indicates greater threat). Percentages are row percentages and may not total 100% due to rounding. Data are sorted in descending order by 2006 average column.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

Perceived Threats to Employee Retention• According to HR professionals, the top threats to employee retention at their organizations were career

opportunities elsewhere, better compensation elsewhere, burnout and dissatisfaction with career develop-ment at their organizations. With the exception of burnout, these findings correspond with the top reasons employees voluntarily left their organizations, according to HR professionals and employees.

• Career opportunities elsewhere were perceived by HR professionals as a greater threat in 2006 than in 2004 or 2005.

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282006 U.S. Job Retention Poll Findings

• Compared with respondents from small-staff-sized organizations, HR professionals from large-staff-sized organizations perceived the following factors as greater threats to employee retention at their organizations: accompanying a relocating spouse/partner, conflicts with co-workers, difficulty balancing work/life issues, dissatisfaction with potential career development at the organization and retirement.

• Burnout and difficulty balancing work/life issues were perceived threats to employee retention cited more often by HR professionals in large-staff-sized organizations compared with HR professionals in medium-staff-sized organizations.

• According to HR professionals, retirement and return to school were bigger threats to employee retention at medium-sized than at small-sized organizations.

Table 16 Perceived Threats to Employee Retention (HR Professionals, by Organization Staff Size)

Small (1-99 Employees)

(n = 139 )

Medium (100-499 Employees)

(n = 126)

Large (500 or More Employees)

(n = 90)Differences Based

on Staff Size

Accompanying a relocating spouse/partner 1.72 1.82 2.05 Large > small

Burnout 2.73 2.71 3.00 Large > medium

Conflicts with co-workers 1.79 1.88 2.08 Large > small

Difficulty balancing work/life issues 2.25 2.26 2.75 Large > small Large > medium

Dissatisfaction with potential career development at the organization

2.53 2.76 2.83 Large > small

Retirement 1.75 2.06 2.32 Large > small Medium > small

Return to school 1.68 1.98 1.86 Medium > small

Note: Average ratings are based on a scale where 1 = no threat, 2 = small threat, 3 = moderate threat and 4 = large threat (higher average indicates greater threat).Sample sizes are based on the number of respondents providing organization staff size; however, the averages shown are based on the actual number of respondents by size who answered this question using the response options provided.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

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29 2006 U.S. Job Retention Poll Findings

• HR professionals from government and health industries perceived retirement as a greater threat to employee retention at their organizations compared with the service (profit) industry.

• Return to school was reported more frequently by HR professionals in finance and health industries as an area that threatened employee retention, compared with respondents from high-tech and manufacturing (durable goods) industries. Similarly, HR professionals in the service (nonprofit) industry were more likely to cite this factor compared with those from the manufacturing (durable goods) industry.

Table 17 Perceived Threats to Employee Retention (HR Professionals, by Industry)

Finance (n = 28)

Government (n = 20)

Health (n = 39)

High-Tech (n = 22)

Manufactur-ing (Durable

Goods) (n = 40)

Services (Nonprofit)

(n = 23)

Services (Profit) (n = 39) Differences Based on Industry

Retirement 1.93 2.50 2.27 1.55 2.18 1.78 1.55 Government > services (profit) Health > services (profit)

Return to school 2.30 1.80 2.18 1.45 1.46 2.17 1.87 Finance > high-tech, manufacturing (durable goods)

Health > high-tech, manufacturing (durable goods)

Services (nonprofit) > manufacturing (durable goods)

Note: Only industries represented by 10 or more HR professionals were included in this table. Average ratings are based on a scale where 1 = no threat, 2 = some threat, 3 = moderate threat and 4 = large threat (higher average indicates greater threat). Sample sizes are based on the number of respondents providing industry; however, the averages shown are based on the actual number of respondents by industry who answered this question using the response options provided.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

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302006 U.S. Job Retention Poll Findings

• HR professionals from the publicly owned for-profit sector were more likely to perceive difficulty balancing work/life issues, dissatisfaction with potential career development at their organizations and retirement as threats to employee retention compared with respondents from the privately owned for-profit sector.

• Better benefits package elsewhere was more likely to be cited as a threat by HR professionals in the privately owned for-profit sector than by HR professionals in the government sector.

• HR professionals in the nonprofit sector reported employees accompanying a relocating spouse/partner, eldercare issues and returning to school as greater threats to employee retention compared with respon-dents in other sectors.

• Retirement was more likely to be cited by HR professionals from the government sector as an area that threatened employee retention than by HR professionals from other sectors.

Table 18 Perceived Threats to Employee Retention (HR Professionals, by Sector)

Publicly Owned For-Profit Organization

(n = 70)

Privately Owned For-Profit Organization

(n = 198)

Nonprofit Organization

(n = 63)

Government Agency

(n = 26) Differences Based on Sector

Accompanying a relocating spouse/partner

1.75 1.75 2.10 2.08 Nonprofit organization> publicly owned for-profit organization,

privately owned for-profit organization

Better benefits package elsewhere 2.49 2.63 2.48 2.04 Privately owned for-profit organization > government agency

Difficulty balancing work/life issues 2.58 2.26 2.56 2.23 Publicly owned for-profit organization > privately owned for-

profit organization

Dissatisfaction with potential career development at the organization

2.96 2.58 2.81 2.50 Publicly owned for-profit organization > privately owned for-

profit organization

Eldercare issues 1.49 1.48 1.73 1.54 Nonprofit organization > privately owned for-profit organization

Retirement 2.23 1.80 2.11 2.77 Government agency> publicly owned for-profit organization, privately owned for-profit organization,

nonprofit organization Publicly owned for-profit

organization > privately owned for-profit organization

Return to school 1.72 1.77 2.24 1.73 Nonprofit organization > publicly owned for-profit organization,

privately owned for-profit organization, government agency

Note: Average ratings are based on a scale where 1 = no threat, 2 = some threat, 3 = moderate threat and 4 = large threat (higher average indicates greater threat). Sample sizes are based on the number of respondents providing sector; however, the averages shown are based on the actual number of respondents by sector who answered this question using the response options provided.

Source: SHRM/CareerJournal.com 2006 U.S. Job Retention Poll Findings

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Conclusions

According to HR professionals, on average 12% of their workforce had voluntarily resigned since the beginning of 2006. The majority of

HR professionals reported being concerned about the number of voluntary resignations from their orga-nizations, and the level of concern has increased since 2004. It is not surprising that employee reten-tion is a major concern among HR professionals, given the many implications for an organization with the loss of talent, including the resources involved in hiring and training new employees and the impact of turnover on member service. It is becoming increas-ingly more difficult to attract and retain quality staff due to a competitive and shrinking labor market. As the economy and job market continue to improve, employee retention poses a greater challenge for HR professionals. Among currently employed respon-dents, about half reported that they were very likely to search for another job as the economy and the job market continued to improve.

The reasons employees leave organizations can vary widely, and as noted throughout the report, there were differences between the results in 2004 and 2006, between employees and HR professionals and among various demographics. Better compensation elsewhere, career opportunities elsewhere and dis-satisfaction with potential for career development at the organization were among the top reasons employees chose to leave their jobs. These were

similar to the factors that posed the greatest threats to employee retention within organizations. Taking the steps to develop and implement well-planned retention strategies can have a positive effect on the bottom line. Employers have used employee attitude surveys and exit interviews to learn more about what employees think about the organization. Turnover data can help an organization track results both before and after implementation of various retention efforts. The findings from this poll also provide invaluable insight about special reten-tion processes, effective retention efforts, reasons employees leave their organizations and factors that pose threats to employee retention from the employ-ee and HR professional perspectives.

Employees and HR professionals cited competitive salary, career development opportunities and flex-ible work schedules as the most effective employee retention efforts. Trend data from the SHRM Job Satisfaction Series show that compensation/pay has consistently been rated as one of the most impor-tant factors to employee job satisfaction. Although salary increases are often perceived as the most valuable incentive for employees to stay with their current jobs, they are also among the most difficult to provide because although the economy is improv-ing, organizations are still somewhat cautious to increase spending. However, businesses can come

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33 2006 U.S. Job Retention Poll Findings

up with creative ways to implement retention pro-cesses, such as adding new positions or cross- training employees so that they can gain further skills and experiences as a way to offer career devel-opment opportunities.

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342006 U.S. Job Retention Poll Findings

Gender Position Level

Time in Workforce

Region

(n = 462)

Executive level (e.g., CEO, CFO) 9%

Middle management (e.g., director, manager, supervisor) 46%

Nonmanagement (e.g., assistant, coordinator, specialist) 45%

(n = 430)

Midwest (Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin) 28%

Northeast (Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont) 33%

South (Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia) 24%

West (Alaska, Arizona, California, Colorado, Hawaii, Idaho, Nevada, New Mexico, Montana, Oregon, Utah, Washington, Wyoming) 14%

Age

(n = 462)

Female 49%

Male 52%

Note: Percentages do not total 100% due to rounding.

(n = 462)

Respondents indicated that they have been in the workforce for an average of 18 years.

Less than six years 18%

Six to 10 years 15%

11-20 years 32%

21-30 years 24%

31+ years 12%

Note: Percentages do not total 100% due to rounding.

(n = 462)

35 or younger 37%

36 to 55 52%

56 or older 11%

Employees

Demographics

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35 2006 U.S. Job Retention Poll Findings

Organization Staff Size Industry

(n = 357)

Health 11%

Manufacturing (durable goods) 11%

Services (profit) 11%

Finance 8%

Manufacturing (nondurable goods) 7%

Government 6%

High-tech 6%

Services (nonprofit) 6%

Wholesale/retail trade 4%

Educational services 3%

Insurance 3%

Construction and mining/oil and gas 2%

Telecommunication 2%

Transportation 2%

Utilities 2%

Newspaper publishing/broadcasting 1%

Other* 15%

*Other included responses such as professional/scientific/technology services and hospitality.

(n = 355)

HR professionals indicated that, on average, the number of employees at their location was 1,105.

Small (1-99 employees) 39%

Medium (100-499 employees) 36%

Large (500 or more employees) 25%

HR Professionals

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362006 U.S. Job Retention Poll Findings

Region

(n = 352)

Midwest (Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin) 38%

Northeast (Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont) 17%

South (Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia) 26%

West (Alaska, Arizona, California, Colorado, Hawaii, Idaho, Nevada, New Mexico, Montana, Oregon, Utah, Washington, Wyoming) 20%

Note: Percentages do not total 100% due to rounding.

Sector

(n = 357)

Publicly owned for-profit organization 20%

Privately owned for-profit organization 56%

Nonprofit organization 18%

Government agency 7%

Note: Percentages do not total 100% due to rounding.

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37 2006 U.S. Job Retention Poll Findings

SHRM Survey Reports

Available to members and the public

1. SHRM/CareerJournal.com 2006 Workplace Romance Poll Findings (17 pages, January 2006)

2. SHRM/CareerJournal.com 2005 U.S. Job Recovery and Retention Survey Report (40 pages, November 2005)

3. Organizational Communication Poll Findings (24 pages, June 2005)

4. Workplace Productivity Poll Findings (17 pages, January 2005)

5. SHRM/CareerJournal.com Workplace Privacy Poll Findings (47 pages, January 2005)

6. SHRM/CareerJournal.com 2004 U.S. Job Recovery and Retention Poll Findings (33 pages, November 2004)

7. Employee Trust and Loyalty Poll Findings (21 pages, July 2004)

8. Job Negotiation Survey Findings (41 pages, April 2004)

9. Job Opportunities Survey (39 pages, September 2003)

10. Job Recovery Survey (28 pages, August 2003) 11. Job Opportunities Poll (39 pages, April 2003) 12. Job Satisfaction Poll (74 pages, December 2002)13. HR Implications of the Attack on America

(23 pages, September 2002)14. Corporate Credibility and Employee

Communications Survey (14 pages, August 2002)

15. Job Opportunities Poll (30 pages, August 2002)16. Workplace Romance Survey (24 pages, February

2002)17. School-to-Work Programs Survey (16 pages,

January 2002)18. HR Implications of the Attack on America:

Executive Summary of Results of a Survey of HR Professionals (13 pages, October 2002)

19. Negotiating Rewards Poll (14 pages, October 2001)

20. Search Tactics Poll (8 pages, April 2001)

Available to members only

1. 2006 Weapons in the Workplace Survey Report (33 pages, November 2006)

2. 2006 Workplace Diversity Survey Report (34 pages, October 2006)

3. 2006 Strategic HR Management Survey Report (31 pages, October 2006)

4. Manufacturing Industry Findings on Human Resource Topics (47 pages, July 2006)

5. 2006 Benefits Survey Report (80 pages, June 2006)

6. 2006 Job Satisfaction Survey Report (57 pages, June 2006)

7. 2006 Succession Planning Survey Report (33 pages, June 2006)

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382006 U.S. Job Retention Poll Findings

8. 2006 Executive Compensation Survey Report (33 pages, May 2006)

9. 2006 Access to Human Capital and Employment Verification Survey Report (34 pages, March 2006)

10. 2006 Talent Management Survey Report (30 pages, January 2006)

11. 2005 Disaster Preparedness Survey Report (48 pages, October 2005)

12. 2005 Workplace Diversity Practices Survey Report (40 pages, October 2005)

13. 2005 Offshoring Survey Report (51 pages, October 2005)

14. 2005 Fair Labor Standards Act Survey Report (22 pages, August 2005)

15. 2005 Benefits Survey Report (72 pages, June 2005)

16. 2005 Future of the U.S. Labor Pool Survey Report (58 pages, June 2005)

17. 2005 Job Satisfaction Survey Report (52 pages, June 2005)

18. SHRM/Catalyst Employee Development Survey Report (36 pages, April 2005)

19. 2005 HR Technology Report (37 pages, March 2005)

20. 2005 Rewards Programs and Incentive Compensation Survey Report (38 pages, March 2005)

21. The Maturing Profession of HR: Worldwide and Regional View Survey Report (33 pages, February 2005)

22. Reference and Background Checking Survey Report (41 pages, January 2005)

23. Job Satisfaction Series Survey Report (193 pages, August 2004)

24. Generational Differences Survey Report (41 pages, August 2004)

25. Employer-Sponsored Investment Advice Survey Report (60 pages, July 2004)

26. Human Resources Outsourcing Survey Report (40 pages, July 2004)

27. 2004 Benefits Survey Report (76 pages, June 2004)

28. Health Care Survey Report (40 pages, June 2004)

29. SHRM/CNNfn Job Satisfaction Series: Job Satisfaction Survey Report (52 pages, April 2004)

30. SHRM/CNNfn Job Satisfaction Series: Job Compensation/Pay Survey Report (36 pages, February 2004)

31. The Maturing Profession of Human Resources in the United States Survey Report (48 pages, January 2004)

32. Workplace Violence Survey (52 pages, January 2004)

33. SHRM Eldercare Survey (40 pages, December 2003)

34. SHRM/CNNfn Job Satisfaction Series: Job Benefits Survey (57 pages, December 2003)

35. Undergraduate HR Curriculum Study (45 pages, October 2003)

36. SHRM Equal Employment Opportunity Commission Survey (10 pages, October 2003)

37. Fair Labor Standards Act (FLSA) Survey (20 pages, August 2003)

38. SHRM/SHRM Foundation 2003 Benefits Survey (81 pages, June 2003)

39. SHRM Job Satisfaction Series: Job Security Survey (41 pages, June 2003)

40. SHRM/NOWCC/CED Older Workers Survey (53 pages, June 2003)

41. March 2003 Current Events Survey (28 pages, May 2003)

42. 2003 FMLA Poll (20 pages, April 2003)43. 2003 Business Ethics Survey (48 pages, April

2003)44. Employer Incentives for Hiring Individuals With

Disabilities (66 pages, April 2003) 45. Fun Work Environment Survey (56 pages,

November 2002) 46. Aligning HR With Organizational Strategy

(53 pages, November 2002) 47. Recruiter Cost/Budget Survey (30 pages,

October 2002)

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39 2006 U.S. Job Retention Poll Findings

48. 2002 SHRM/Fortune Survey on the Changing Face of Diversity (16 pages, October 2002)

49. Workplace Demographic Trends Survey (37 pages, June 2002)

50. Global Leadership Survey (36 pages, June 2002) 51. SHRM 2002 Benefits Survey Results (57 pages,

April 2002) 52. A Study of Effective Workforce Management

(36 pages, February 2002) 53. Resource Strategies, Stages of Development

and Organization Size Survey (46 pages, January 2002)

54. Job Security and Layoffs Survey (76 pages, December 2001)

55. World Events Survey-Impact on Global Mobility (4 pages, November 2001)

56. Religion in the Workplace (58 pages, June 2001)

57. Employee Referral Programs (40 pages, June 2001)

58. Impact of Diversity Initiatives on the Bottom Line (41 pages, June 2001)

59. 2001 Benefits Survey (59 pages, April 2001) 60. 2000 FMLA Survey (51 pages, January 2001) 61. Workplace Privacy Survey (51 pages, December

2000) 62. Performance Management Survey (43 pages,

December 2000) 63. Impact of Diversity Initiatives Poll (5 pages,

October 2000) 64. 2000 Retention Survey (40 pages, June 2000) 65. SHRM Cover Letters and Resume Survey

(39 pages, May 2000)66. 2000 Benefits Survey (52 pages, April 2000)

www.shrm.org/surveys

SHRM members can download this survey report and many others free of charge at www.shrm.org/surveys. If you are not a SHRM member and would like to become one, please visit www.shrm.org/application.

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