While the employment rate may be increasing, employee turnover is also on the rise as absenteeism and resignations increase and business struggle to retain employees, according to the HR Metrics Service.
There has been a sharp increase in the rate of resignations since 2009 and this is expected to grow. In 2009, the median cost of resignations per organization for a workforce of 500 was $1.2 million. In 2010, the cost increased by 60 per cent to $1.9 million, found the metrics service, a collaborative venture by the BC Human Resources Management Association (BC HRMA), the Human Resource Management Association of Manitoba (HRMAM) and the Human Resources Professionals Association (HRPA).
“Although the projected labour shortage has not materialized, there is still a shortage of key skills and a mismatch between the skills available and the roles available,” said the Talent Management Update – Q2 2011. “Employers also have a preference for hiring those who are working rather than those who are not. The data suggests that there are a growing number of opportunities for those with the right skills and employers would be wise to invest in retention strategies for their key talent instead of suffering the costs of resignations.”