A blog to complement the Web site of the Public Relations Association of Mississippi-Central Chapter Web site at www.pramcentral.org.

Monday, March 07, 2005

Making the Case for a Stronger Internal Comms. Organization

When the going gets good, the good get going--that's the outlook for the U.S. job market according to Priority Magazine. With the economy gaining momentum and unemployment down, recent studies show that employees may be quietly looking for greener pastures.

The reasons are simple: during lean times, management pressed employees to go the extra mile while cutting back on benefits. Often, the only avenue employees feel they have to escape their current situation is to move on to another position, one that might present new opportunities, more alluring responsibilities, and more support from within the organization.

Here are some vital statistics to hold onto when convincing your management that a stronger employee communications program is needed to help keep employees onboard and ultimately save the company from spending the loads of cash that would be needed for re-staffing:

Cost of Replacing an Employee -- Recruitment, Training, Relocation, and Salary/Bonuses (1)Executive Level -- 300% of current employee's salary (e.g. $180,000 vs. $60,000)
Non-Management -- 200% of current employee's salary (e.g. $80,000 vs. $40,000)

Disengaged Workforce Issues
Percent of workforce estimated as being ready to switch employers: 60% (1)
Percent of workforce who say they received no meaningful rewards or recognition for their efforts last year: 61% (2)
Percent of workforce who consider themselves clock-watchers who can't wait to go home: 71% (2)

Employees Who Would Recommend Their Company to Others as a Good Place to Work (3)Loyal employees: 90%
'Trapped' employees: 36%

Employees Who Would Resist Job Offers from Another Firm (3)
Loyal employees: 55%
'Trapped' employees: 26%

Employee Loyalty by Industry (3)
Insurance: 40%
Financial Services: 33%
Government: 28%
Manufacturing: 27%

Sources: 1) Priority Magazine, March-April 2004 edition.2) The Wall Street Journal/Gallup Poll 3) Potentials Magazine, January 2004 edition. (from LACP SPIN, March 2005)

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