Abstract
Voluntary employee turnover in the United States continues to spiral out of control and is expected to steadily increase in the coming years. Annual cost to American businesses exceeded $630 billion and is expected to exceed $700 billion within the next 24 months. The reasons for the sharp increase in voluntary turnover are not generational by nature as employees of all generations seek a connection with their employer and the ability to share in the firm’s growth. The reasons expressed by employers and employees include lack of training, weak relationships with managers and a general disconnect from company strategy. The primary reason given in recent years is lack of career development. Scheduled, agenda-driven discussions between senior leadership and the employee is needed to focus on employee skills, capacity for learning and enterprise goals has shown promise in reducing voluntary turnover, increasing employee engagement, and increasing talent depth in medium and large businesses. Career planning and development is not necessarily transactional as it includes specific training for a specific purpose to fit the firm’s strategic objectives. This approach can be used for lateral and vertical movement within the company. This proposal seeks to bridge the gap between existing literatures, current human capital management practices and move the discussion to a level that benefits employees and employers alike.
Highlights
Voluntary turnover of all generations currently exceeds 20 percent annually
The primary purpose of this proposal provides the justification for regularly scheduled career planning discussions and following through with employee training, thereby mitigating the likelihood of voluntary turnover within
Employee turnover in American companies averages over 20 percent per year and is expected to rise in the coming years
Summary
Voluntary turnover of all generations currently exceeds 20 percent annually. This has remained flat throughout 2020, despite temporary employment status changes caused by COVID-19 [1]. A study conducted by the Work Institute yielded data indicating turnover costs American businesses over $630 billion per year and is expected to exceed $700 billion by 2022, increasing each year thereafter [2] This figure excludes indirect costs such as the cost of training new-hires, customer relationships, intellectual property, decreased productivity, and overall employee morale. Little research exists about specific steps to follow to match employee desires and skills to current and future enterprise needs This must be done at the executive level, rather than through the direct manager. Once various career options are identified and agreement is reached, the executive must proactively schedule requisite training to facilitate progression in the employee’s career path Research indicates this is done with the primary supervisor. This ensures training is ongoing and allows the executive to modify the training schedule as needed to fit within the firm’s strategic objectives
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