Quick Takes: Jumping Ship - Are your employees itching to leave?

What's going to happen when the job market improves? And how will it affect your business?

Not surprisingly, the results of a survey conducted by the Society for Human Resource Management (SHRM) and CareerJournal.com shows that the majority of HR professionals and employees believe job turnover will rise significantly once the job market improves. And, both groups expect the job market to improve in the next year.

Eighty-three percent of employees said it was extremely likely or somewhat likely that they would actively seek new employment once the job market and economy improved. In addition, 56% of HR professionals agreed it was extremely likely or somewhat likely that voluntary turnover would rise due to the improving economy.

That prediction is something small businesses with limited financial resources need to consider - and worry about - in planning long-term staffing and ongoing client contracts. Although no employer likes to think about the possibility of key employees quitting, loyalty to an employer isn't uppermost in most employees' minds. Money and career advancement are. Here are the top three reasons employees cited for changing jobs once the job market improves:

53 percent—better compensation and benefits
35 percent—dissatisfaction with potential career development
32 percent—ready for a new experience.

Survey results also show that HR professionals have retention program in place that they believe will lower voluntary turnover rates as the job market improves. The most commonly cited retention programs were:

62 percent—tuition reimbursement
60 percent—competitive vacation and holiday benefits
59 percent—competitive salary

But small businesses, often don't have a dedicated HR professional on staff. Nor do they typically have the money to fund tuition reimbursement plans, extended vacations, or very competitive salaries. And benefits? The soaring costs of healthcare insurance makes it harder and harder for small businesses to provide decent healthcare for their employees. In fact, it's not unusual for the owner of some of the very small businesses to get healthcare for themselves through their spouse's corporate plan.

Yet another problem: HR professionals in smaller organizations may be underestimating the potential for turnover in their organizations. The survey found that while 71 percent of the HR professionals in large organizations (those with more than 500 employees) thought it would be extremely likely or somewhat likely to experience an increase in voluntary turnover once the job market improves, only 41 percent of those in small organizations (1-99 employees) said it was extremely likely or somewhat likely that there would be an increase in turnover.

What's your take? Is your small business likely to be affected? What steps are you taking, if any, to reduce turnover, or to cross-train employees to handle critical tasks in case a key employee leaves? Post a message on our message board, or drop us a line in email.

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About the author
Janet Attard is the founder of the award-winning Business Know-How small business web site and information resource. Janet is also the author of The Home Office And Small Business Answer Book and of Business Know-How: An Operational Guide For Home-Based and Micro-Sized Businesses with Limited Budgets. Follow Janet on Twitter at http://www.twitter.com/JanetAttard.

Jumping Ship: Are your employees itching to leave?