Failure to manage and retain key employees negatively affecting corporations’ bottom line

The Corporate Executive Board (CEB), a research and advisory services company, has announced research that indicates companies’ failure to manage and retain top talent is negatively affecting their balance sheets. In fact, 25 percent of top employees plan to change jobs in the next 12 months alone.

For organizations that haven’t yet faced the intense time and financial pressure associated with retaining top talent, the cost of high-potential departures may be shocking. For each high-potential employee that departs, an employer will lose as much as 3.5x that employee’s total annual compensation. Organizations that think they are immune may also be surprised to learn that more than half of employers surveyed acknowledged that their own organizations are ineffective at managing and retaining top talent.

Across geography, industry and economic cycle, high-potential employees can have a substantial impact on business results. However, 64 percent of high-potential employees say they are unhappy with their development activities. What’s more, fewer than one-in-three organizations reported significant returns from investments made in their top employees.

Source: PRNewswire.