Leadership and Employee Turnover
A recent article in the Wall Street Journal (http://online.wsj.com/article/SB10001424052748704113504575264432377146698.html) reports on the increasing trend of employees voluntarily leaving their jobs. Two contributing factors are noted: the improving job market and, most significantly, the pent up dissatisfaction and anger towards their current work environments. In the recent economic trouble, many corporations and institutions instituted cost cutting measure that have severely hurt or outright destroyed employee morale and loyalty. Layoffs, salary cuts, benefits cuts, repeated reorganizations, freezes on wages and new hires have all taken their toll on employee respect for their management and the firms they work for. Perhaps far more damaging to loyalty than these direct actions has been indirect impact such as massively increased workloads and the general stress and tension of the times.
When employees leave, there are not only the obvious costs of recruitment, hiring, and explicit training of their replacement, but substantial intangible costs that are incurred. These include the time it takes the new employee to "come up to speed" on the job, build relationships with clients and coworkers, integrate with existing project teams, and more. Projects are delayed with employee loss. Additional workloads, pressure, and stress are displaced to other staff while openings are filled, thereby increasing the drivers incenting others to find better positions elsewhere.