HR Departments Suffer From Tight Labor Market

Compiled ByJonathan Katz Human-resource professionals are becoming increasingly concerned about voluntary turnover within their organizations, according to the Society for Human Resource Management (SHRM). The 2000 Retention Practices Survey found that 41% of professionals surveyed reported that the number of voluntary resignations in their organization rose since 1997; compared with 35% in a five-year survey compiled in 1997. "Anyone who has tried to hire skilled workers lately knows the squeeze the current labor market is putting on employers," says Michael R. Losey, SHRM president and CEO. "In a knowledge-based economy such as ours, an organization's human assets are its competitive edge. HR professionals are keeping a close eye on voluntary turnover rates and paying attention to which recruitment and retention tactics are working." Eighty-seven percent of those surveyed said their employees left for more lucrative job opportunities. HR professionals said in their own studies they discovered that employees left for better compensation and benefits packages and more qualified management.