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Many Firms Expect Rising Employee Turnover

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212-903-8196
jjones@amanet.org

1/17/2013

One in three employers expect turnover to rise at their organization in 2013, according to a survey by AMA Enterprise, a division of American Management Association.

In fact, 5% think turnover will increase significantly, 28% somewhat; 58% expect no change, and 9% don’t know.

Do you expect your organization’s employee turnover to rise next year?

Yes, turnover will increase significantly.

 

5%

 

Yes, turnover will increase somewhat.

 

28%

 

No, turnover will be the same as in recent years.

 

58%

 

I don’t know.

 

9%

 

 

AMA Enterprise, which provides organizations with assessment, measurement and tailored learning solutions, surveyed top managers and executives from nearly 1,000 U.S. employers.

"We had an unusually strong response to our survey, which was conducted during the holiday period," said Sandi Edwards, AMA Enterprise Senior Vice President. "Based on our findings, there’s a widespread sense that more workers will be on the move this year, and this will be due largely to a revived job market, which nearly two out of three of our respondents feel confident about."

"The good news is that there’s growing confidence about the economy and the job market," Edwards said. "The bad news is that there’s also growing disgruntlement among employees, which is likely to result in increased turnover."

Are companies ready to cope with a mounting loss of employees? Of those that anticipate higher turnover, organizations seem evenly divided on how well they are prepared.

If you expect higher turnover in the year ahead, how well prepared do you think your organization is deal with it?

 

Our organization is not at all prepared.

 

22%

 

Our organization is somewhat prepared.

 

59%

 

Our organization is well prepared to deal with any rise in turnover.

 

19%

 

 

"Regrettably too many companies admit they’re not ready to deal with the probable challenge," warned Edwards. "And a great majority say they’re only ‘somewhat prepared,’ which leaves them highly vulnerable to the loss of talent."

Edwards advises employers to tune in to employee sentiment and have one-on-one career discussions, particularly with high potential and high value employees. "Let them know how they contribute to the success of the firm and what role they play both today and in the future."

The survey was conducted December 18 to January 6 and respondents consisted of 977 senior-level business, human resources, management professionals and employee contacts drawn from the AMA database of contacts.

With more than 85 years’ experience and headquartered in New York,

American Management Association is a global leader of comprehensive talent development. AMA Enterprise, a specialized division of AMA dedicated to building corporate and government solutions, transforms enterprise-wide talent to fuel a culture of innovation, high performance and optimal business results.