Recruiting and retention are the top two Rs of
staff management in business today
While recruiters and human resources managers
hone their skills at recruiting talent, retaining key and valuable employees is
As the economy continues to grow, more and more
employers are seeking qualified candidates, a scenario that encourages a
percentage of workers to look afield for different opportunities.
Job Hunters Seek to
In an August 2014 article in Fortune, Tara
Sinclair, an economist in the research arm of Indeed.com is quoted as saying ,
“We expect to see that, as the economy improves, more job hunters will try and
move into something that’s closer to their ‘dream job’.”
According to the Fortune article, Sinclair and
her team used Indeed’s database to analyze the activity of 430,000 people. They
found that 86 percent of job seekers who are already employed are looking for
different positions, 60 percent are looking outside their fields and 28 percent
are looking to move to a different state.
To stay competitive and increase current
employees’ staying power, companies are looking at higher salaries, bonuses,
flexible hours or a transfer to another company site. The states most
attractive for employee movement are Texas, California and Florida. Workers are
seeking to leave Washington, D.C., Wyoming and West Virginia.
Salaries are reflective of employers’ efforts
to retain workers. The Employment Cost Index from the Bureau of Labor
Statistics found compensation costs rose 0.7 percent in the first quarter of
2015 and over the year, compensation rose 2.6 percent and benefits climbed 2.7
A New Model
Until the end of the twentieth century, it was
common for people to spend their working lifetime at one or two companies. Now,
it’s an increasing trend for employees to job hop, especially in the millennial
generation. According to the Bureau of
Labor Statistics’ Employee Tenure Summary, an average worker had been with
their company a median time of 4.6 years.
In an August 2012 Forbes article, Jeanne
Meister said Millennials, the generation of workers born between 1977 and 1997,
expect to stay in a job for less than three years; they might have 15 to 20
jobs over their working lifetime.
In the face of this movement, employers are starting
to use employee algorithms, a form of cognitive computing, to predict
who is thinking about leaving the company and why.
The algorithms make their predictions by
analyzing employee data including promotions, past tenure, employment
responsibilities, work relations and office atmosphere. While the algorithms
analyze the likelihood of the employee leaving, none are absolute. The human
element can’t be quantified or directly represented, but a combination of
variables can be considered and weighed to determine how likely it is that the
The Society for Human Resource Management’s
publication Retaining Talent lists
variables considered by a turnover predictor. At the top end, search behaviors,
relationship with supervisor, and role clarity represent variables with high
correlation to turnover rates while the bottom topics are race, sex, marriage
status, pay, and lateness. These have a weaker influence on employee retention.
Workday, a developer
of human resources software, also offers retention projections with the use of
an algorithm app, Workday Talent Insights. The company
says that the tool can identify and understand retention risk for the entire
organization including the number of top performers at high risk of leaving in
the next year and the projected cost to replace them. The app looks as such
factors as time in current job function, number of job functions held or time
people-analytics company, provides human resources services for analyzing
employee performance and attrition and says their predictions can predict
employee disengagement twelve months in advance. In order to make accurate
forecasts, Volometrix considers employee mentorships, work-life balance, and
time-allocation along with employee emails and meetings. They have observed a
strong correlation between employee engagement and retention.
The Australian-based survey and analytics
firm, Culture Amp, also connects
variables of workplace engagement such as leadership and managerial competency
when determining possible talent loss.
In a Businessweek.com article, Ultimate Software, another algorithm
developer, says they collect such factors as pay, job performance, benefits and
career path. Using the company’s UltiPro Retention Predictor platform, Ultimate
Software claims to create “a statistical model that represents if the employee
will stay at their company for the next twelve months.” While no company has found one specific cause
for employees leaving, Ultimate Software has noticed correlations between
employees who have turned down benefits and those who quit.
On the flip side of employee retention, Bloomberg Business recently reported J.P.
Morgan will roll out an algorithm that uses a surveillance unit to track
The algorithm, developed by Tennessee-based
Digital Reasoning Systems, has technology similar to that built for
counter-terrorism and collects such data as emails, chats and phone calls.
Using this information J.P. Morgan hopes to identify those rogue employees who
may pose a future risk for the giant bank, already reeling from losses since
the financial crisis, including legal bills of $36 billion