Staff retention difficulties are widespread

81% of all organisations believe turnover hinders their effectiveness, according to a new survey.

With 47% of those polled saying they are experiencing retention difficulties, this is a major stumbling block throughout the market.

The 2008 Employee Retention Survey, conducted by engagement and retention specialist Talent Drain, is made up of responses from HR departments in a number of sectors, including private, public and voluntary.

In its introduction to the report, Talent Drain emphasised the importance of this kind of research.

It said: "It is generally acknowledged that the prevailing HR market is increasingly 'candidate-driven'.

"Low levels of unemployment, increasing job vacancies, and widespread skills shortages mean that a candidate can be more selective about potential job opportunities."

The report continued that many organisations are increasingly recognising that turnover is a major cost-centre for them - Talent Drain reported average replacement costs as being estimated at £7,750, reaching as high as £11,000 for senior managers and directors.

Turnover appeared to hit larger organisations harder, with 89 per cent of these saying it had a negative effect versus just 64 per cent of smaller organisations - those with fewer than 100 employees - saying this was the case.

The study's conclusion was relatively straightforward, that: "It is fair to say that difficulties generally occur when turnover becomes too high, when employees with key skills and talent leave, or when newcomers leave early, representing an investment cost with no dividend."

Source: Talent Drain