A paradox is defined as “a statement that is seemingly contradictory or opposed to common sense and yet is perhaps true.” I cannot think of a more fitting word to describe our current economy and employment outlook.

In my experience, it is rare to see such a dichotomy of both excess and scarcity when it comes to hiring.  As a recruiter and active member of the Denver Workforce Investment Board, I have noticed some businesses are having a hard time finding experienced talent. On the other hand, others are experiencing an excess of candidates for each open position, so much so that the sheer volume of applications can be overwhelming.

According to statistics, our unemployment numbers are decreasing.  Yet at the same time, very few new jobs are being created.  Looking deeper into the unemployment numbers, you see that unemployment rates are highest for those who hold only a high school diploma (9.8 percent). Rates are even higher for those who haven’t graduated high school (15.7 percent).  For those with a couple years’ experience and a bachelor’s degree, the unemployment rate drops to 4.6 percent.

As a business owner or team leader, you may assume your top talent will be staying put because of the poor economy; that they’re happy to have a job and are thus fully engaged.  Experts, though, say that’s not a safe assumption to make. Many are reporting that employee engagement now is at an all-time low and as many as 80 percent of employees are looking for or would be interested in a new job.  And that’s not the only bad news; remember, turnover can cost a company as much as 200 percent of the departed employee’s salary.

Let me point out, though, that not all turnover is bad turnover. Among some businesses, turnover can be too low. When turnover is too low, it can foster an environment that is resistant to change and innovation. Bringing in new employees with fresh ideas can inject some imagination and vitality into your business or team. In that case, turnover can be a good thing.

For most of us, though, turnover isn’t a good thing. Unfortunately, I’ve found many businesses are inadvertently causing high turnover rates, and not the good kind.  What can cause your best employees to leave?

Here are a couple of the biggest reasons:

  • An unclear future.  Employees who are not clear or confident about the direction the company is moving become unclear and insecure about the future of their job.
  • Supervisor/subordinate misalignment.  Many people tend to quit their bosses, not the company.
  • Role Ambiguity.  When an employee’s role has changed dramatically from its original scope, conflicting goals and initiatives can resulted in an employee feeling as though they don’t know what’s coming next. That can lead to feeling insecure and resentful.
  • Poor growth or learning opportunities.  Most employees must consistently upgrade their skills and knowledge to meet changing customer demands. When they are not afforded the opportunity to do so, they may become frustrated and feel as though they are “stuck in a rut.”

Luckily, there are ways to mitigate these issues. Talent Management is becoming a buzzword among many companies and human resource executives.  The best companies know their employees are their only true competitive advantage and behave accordingly. Hiring the best candidates with the right alignment, capabilities, and engagement will make all the difference in your business future.  How can you positively influence your company’s retention and turnover rates?

Here are some tips:

  • Don’t assume your employees aren’t looking for new opportunities. Keep talent management discussions strategically focused at engaging employees and keeping in-tune with their concerns and questions.
  • Develop talent management initiatives that create commonality between your business and employee’s goals. In this way, an employee will feel confident knowing that in helping your business succeed, they are also helping themselves succeed.
  • Look at how well you are balancing the economic influences in your market space with what your employees need to know to help them remain competitive, focused and engaged.  It is in the best interest of your company to have an employee informed about the latest tools and techniques, and your employee will appreciate opportunities for learning and growth.

It’s a cliché, but change is constant. The world today is different than it was even six months ago.  Effectively managing change, whether it’s good turnover or bad turnover, is imperative in times like these.  Those who succeed in doing so will find their efforts positively influence their business’s quality, customer loyalty, employee loyalty and financial performance.

About Stephanie Klein

Stephanie Klein is past president of the Colorado Human Resource Association and President and CEO of Experience Factor, a Denver staffing and placement firm. Contact her at 303-300-6976.