Talent management software provider Cornerstone OnDemand estimates that 21 million Americans are planning to change jobs in the next year. Calculating turnover costs at up to 250% of annual salary per exiting employee, Cornerstone concludes that employers can expect a price tag of $2 trillion on employee churn in 2012.
With the economy still struggling, and unemployment still hovering close to 9%, the country needs every dollar it can find. Help do your part to save the economy $2 trillion: Be a better manager!
Employees clearly are in need of some extra attention from managers, Cornerstone finds, as survey respondents say within the past six month they have:
- Received useful feedback from their manager/employer (37%).
- Received training and development to help them better perform their job (34%).
- Performance goals that are aligned with company business objectives (32%).
- Established career goals with their manager/employer (20%).
“Especially now at a time when companies are challenged with finding skilled workers, it is important to invest in the training and development of people in order to build strong pools of talent and recruit from within,” says Adam Miller, CEO and founder of Cornerstone OnDemand.
Performance reviews could use some reworking as well, according to Miller. “Managers who simply go through the motions with performance appraisals not only risk employee retention, but also limit the success of the business,” he says. “Performance management should be about developing employees to help them succeed and stay aligned with the goals of the organization.
“While a lot of organizations are set up as hierarchies, how work actually gets done is in more of a matrix-based structure. With this in mind, it makes sense to allow for reviews from peers, project leaders or clients that people work with on a daily basis. It gives employees the helpful feedback they need, and it gives managers better insight for more meaningful discussions with their direct reports.”
What do you think? Could improving talent management help save the day economically? How effective is your company’s talent management/performance review strategy? Share your thoughts in the comments.
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