First Monday - August 8, 2000

What Workers Are Looking For

According to the newly-released 2000 Retention Practices Survey by the Society for Human Resource Management (SHRM), human resource professionals are more concerned about voluntary turnover within their organizations than they were just three years ago. The survey was an update to a similar survey conducted by SHRM in 1997.

Of the human resource (HR) professionals surveyed, 41 percent reported that the number of voluntary resignations in their organization rose in the past 3 years.

The majority of respondents said their organizations conduct exit interviews to determine why employees resigned. Seventy-eight percent of respondents say that the most common reason employees voluntarily leave is for the pursuit of career opportunities elsewhere. And better compensation and benefits packages (65 percent) as well as poor management (21 percent) were the next most often cited reasons for leaving. In terms of retention tactics, respondents cited health care benefits and competitive salaries as the most effective tools.

Because of the high cost of providing Fortune 500-level benefits to employees, many companies are turning to professional employer organizations (PEOs) for help. A PEO serves as an offsite human resources department, providing owners with the relief and resources they need to focus on the productivity and profitability of the company.

"Many organizations initially turn to a PEO as a way to offer workers an improved slate of employee benefits," says Connie Barnaba, Vice President of Human Resource Services for Administaff. "However, they soon discover that a full-service PEO can also provide them with other vital employment resources – resources like professional recruiting assistance, compensation strategies and productivity-based training courses."

Barnaba says that PEOs help business owners find, attract and retain the right people for the right job while providing viable resources to both the employer and the employee. "This approach is proven to be a proven formula for reducing voluntary turnover in a tight labor market."

For more information on PEOs and their services, contact the Florida chapter of the National Association of Professional Employer Organizations at 850-222-6000 or online at www.fapeo.org.

Reprinted from The Monthly Chronicle of the Orlando Chamber of Commerce and the Orlando/Orange County Convention & Visitors Bureau, Inc.