New York -- Rideau Recognition Solutions, Inc., and human resources outsourcing partner Ceridian have backed a report by industry researcher Aberdeen Group that shows the vast majority of companies with formal retention plans were likely to keep turnover among mid-level managers to 5 percent or less. The study results were derived from an online survey of 170 human resources professionals conducted by the Human Capital Institute.
The results point to a widespread movement to keep talent in a fragile marketplace. And that conclusion, too, is backed by the viewpoint of HR professionals participating in the study; 85 percent of them said hiring and keeping talent was a key issue for them. Hiring data is also convincing. A thorough review of financial data performed by Aberdeen says that the average cost of replacing staff -- measured in terms of disruptions in customer service, production, and direct HR costs -- was $13,295. Executives, naturally, commanded a higher premium, identified by Aberdeen as $80,515 per hire.
"We've known for years, intuitively, that the cost of not recognizing employees was in the millions. Now we have the data to prove it," said Rideau CEO Peter Hart. "For example, 10 percent turnover -- which, frankly, is low-balling it -- at a 1,000-person company in the U.S. could cost $1.3 million annually. And that could amount to an extraordinary blow to profits."