….Employee retention has taken on a new significance amid one of the tightest labor markets in the past 50 years. In January, the unemployment rate stood at 4 percent. The robust job market has given employees the confidence to seek new opportunities, while employers are wrestling with rising compensation and heated competition for new hires, both salaried and hourly. ….
…. The business ramifications are enormous. Each employee departure costs about one-third of that worker’s annual earnings, including expenses such as recruiter fees, temporary replacement workers and lost productivity, according to the Work Institute. ….
…. To engender loyalty, companies are trying every tactic, from raising salaries to bolstering benefits to offering more training and education. That last category is becoming critical: Inadequate career development is the leading reason people leave their jobs, the institute reports, with 21 percent of those interviewed citing it as the driving factor. Those employees expressed frustration with the lack of growth, development opportunities and advancement in their jobs. ….