Most Firms Don't Plan for Turnover

Although employee turnover is inevitable, many companies don't consider recruiting a priority—and don't budget for it. Big mistake, according to a principal at Natick, Mass.-based ZweigWhite, a design and construction consulting firm. "Most firms budget for pay raises, and that's about it," says ZweigWhite's John Kreiss.

11/01/2002


Although employee turnover is inevitable, many companies don't consider recruiting a priority—and don't budget for it. Big mistake, according to a principal at Natick, Mass.-based ZweigWhite, a design and construction consulting firm.

"Most firms budget for pay raises, and that's about it," says ZweigWhite's John Kreiss. "They don't think about voluntary and involuntary turnover, and then wonder year after year why they can't hire people when they really need them."

ZweigWhite's Policies, Procedures & Benefits Survey found that nearly three-quarters of firms in the construction industry have no recruiting or human resources budget and that the average firm spends approximately 0.5% of net service revenue on those issues. The top reason firms cited for why they didn't spend more time and money on recruiting was that it's "not a priority."

"Firms cannot run efficiently, much less grow, unless recruiting and human resources receive serious consideration and investment," Kreiss says.





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