Staff churn threatens business growth in 2011

A poll of HR decision-makers has revealed that nearly a quarter expect to see an increase in voluntary churn in 2011, marking it out as a major threat to business growth over the next year.

HR software firm Taleo Corporation surveyed 500 decision makers from large UK companies for its research.

While voluntary churn emerged as a key issue, respondents attributed the majority of potential retention problems to external factors, such as better salaries and opportunities elsewhere.

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“As many organisations plan for growth in 2011, and confidence in the job market returns, employees who may have chosen to sit tight over the last few years are likely to begin exploring new opportunities, seeking new roles and new challenges,” warned Alice Snell, VP research at Taleo.

She claims it is important for companies to develop an effective “talent mobility strategy”, which allows companies to mobilise people internally in response to business needs.

This not only makes great business sense, but can prove an excellent retention tool, offering employees internal opportunities to develop their career with their current employer, she says.

Taleo’s research suggests that talent mobility is increasingly on the HR agenda for 2011, with 71% of respondents agreeing that it is important for companies to be able to proactively and strategically move people from role to role.

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