News | October 15, 2001

Staff Retention Would Increase by 10% if Manager/Employee Relationship Were Better


Mill Valley, CA - 75% of HR Professionals reported that staff retention would increase by 10% if the quality of the relationships between managers and their direct reports improved, according to a recent online survey.

Similarly, a recent DDI study, "Retaining Talent: A Benchmarking Study" reports that an employee's relationship with their supervisor or manager and work-life balance are the most important determinants for staying with an organization. The study reports the top five factors affecting an employee's decisions to stay or leave are:

1. Quality of relationship with supervisor or manager.

2. Ability to balance work and home life.

3. Amount of meaningful work - the feeling of making a difference.

4. Level of cooperation with coworkers.

5. Level of trust in the workplace.

What may be surprising to some HR professionals is that only 10% of HR Professionals reported that an increase in salaries would increase employee retention by 10%, according to the survey.

Economical Impact of Turnover
In a recent article on, "Stemming Turnover in a Slowing Economy", contributors Jim Kochanski and Seymour Burchman from Nextera write, "In almost any situation – growth, downturn, merger, or even stability – there can be a high return on investments to retain employees... No matter what your situation, you need to look closely at the true cost of turnover for each employee segment…Companies cannot afford the significant costs associated with unwanted turnover when they are facing bottom line lower growth."

"HR Professionals are slowly realizing the significant impact employee turnover has on a company's success," says Debbie McGrath, CEO of "The cost to replace an employee is a minimum of 30% (or more) of the employee's income. A company that can keep their employees enjoy higher growth rates, better customer satisfaction and better employee productivity, all which impact the bottom line of any firm."

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