Great Read on High Potential Employees- Why You Need Them to Stay

Retaining High Potentials

by Norman Schippers (Talent Management Magazine)

According to a recent study by the Society for Human Resource Management, 12 percent of the workforce, on average, voluntarily resigned January through August 2006.

More-current statistics do not look any more promising — a February 2007 survey by Salary.com revealed that nearly 66 percent of tenured employees (people who have been in their positions for three to 10 years) plan to look for a new job in the next three months.

The threat of increased turnover is grabbing the attention of management, as well as human resources. The productivity costs of losing 12 percent of your workforce is certainly enough for companies to take action, but when combined with the financial and market impact, addressing retention issues quickly escalates to the top of upper management's priority list.

Studies show employee turnover can cost companies up to 40 percent of their annual profit. That's for the turnover of all employees, regardless of their performance levels. The financial impact of losing a significant number of high- potential employees (those who have been identified as your future leaders) can be exponentially higher.

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http://www.talentmgt.com/succession_planning/2007/August/394/index.php